Lance to buy Archway Cookies assets for $30 million

New York, Dec. 3 - Lance, Inc. said its bid to buy the assets of snack food company Archway Cookies LLC for $30 million was approved by the U.S. Bankruptcy Court for the District of Delaware.

The transaction is expected to close by Dec. 15.

Lance was named stalking horse bidder for both Archway and Mother's Cake and Cookie Co., bidding $30 million for both. Mother's Cake was won by Kellogg Co.

"We're excited about this acquisition," commented David V. Singer, president and chief executive officer of Lance, in a news release.

"Archway was founded in the 1930s, and has built solid market share in its niche of soft, home-style cookies. Archway is an excellent addition to our growing portfolio of consumer preferred niche brands.

"We are looking forward to reopening the Ashland, Ohio production facility, where we intend to produce Archway cookies. This facility will also provide the capacity to support growth in our existing business and capabilities that will broaden the products we can offer our private brands customers, thus supporting our growth goals for our non-branded business."

Archway, a Battle Creek, Mich., cookie company, filed for bankruptcy on Oct. 6 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 08-12323.

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