Lance Inc., the Charlotte-based snack food maker, will merge with Snyder’s of Hanover, a Pennsylvania-based pretzel maker, both companies announced today.

The new company -- Snyder’s-Lance Inc. – will be based in Charlotte, but some key leaders and functions would remain Hanover, Pa.

“This transaction allows us to create a stronger company in a highly competitive industry and simultaneously create value for our shareholders,” Lance President and CEO David V. Singer said in a statement.

Officials on Thursday were calling the stock-for-stock deal a “merger of equals.” Shareholders in each company would own approximately 50 percent of the combined entity, and Lance shareholders would receive a one-time $3.75 special cash dividend.

If approved by shareholders and regulators, Snyder’s-Lance would have combined sales of $1.6 billion.

The deal is expected to close this fall.

The company would have a 16-member board -- eight from the current Lance board and seven from the current Snyder’s board. An additional independent director would be elected after the deal closes.

Lance employs about 1.400 people in Charlotte and is a major sponsor of Qcity cultural events.
 

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