Moody's puts Shearer on negative review

Moody's Investors Service said it placed Shearer's Foods, LLC's B2 corporate family, B2-PD probability of default and B3 senior secured ratings under review for downgrade.

The review follows the announcement that the company will acquire the Lance Private Brands private label business, including two manufacturing facilities from Snyder's-Lance, Inc. (unrated) for $430 million. Moody's expects that the acquisition will be financed with debt.

The review will focus on the company's capital structure, integration risks, customer base and resulting financial leverage following the acquisition, the agency said.

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