News
Snyder's Lance to acquire Diamond Foods
3 Nov 2015Salty snack manufacturer Snyder's-Lance and nuts and snacks specialist Diamond Foods have announced that Snyder's-Lance will acquire Diamond Foods for approximately $1.91 billion.
Salty snack manufacturer Snyder's-Lance and nuts and snacks specialist Diamond Foods have announced that they have entered into a definitive agreement under which Snyder's-Lance will acquire all outstanding shares of Diamond Foods in a cash and stock merger transaction for approximately $1.91 billion.
According to Snyder's-Lance, the strategic combination of the two companies creates an innovative, highly complementary and diversified portfolio of branded products. Diamond Foods brands include Kettle Brand potato chips, KETTLE Chips, Pop Secret popcorn, Emerald snack nuts, and Diamond of California culinary nuts. Each Diamond Foods brand brings unique strengths that fit with Snyder's-Lance's strategic plan, the company said, while increasing the company's annualised net revenue to approximately $2.6 billion. The transaction expands Snyder's-Lance's footprint in "better-for-you" snacking and increases the company's existing natural food channel presence, it said. Snyder's-Lance expects that this transaction will expand and strengthen its Direct Store Delivery ("DSD") network in the United States, and provide Snyder's-Lance with a platform for growth in the UK and across Europe. "Diamond Foods is a clear industry leader with exceptional brands, and we're excited to bring together these two highly complementary companies," said Carl E. Lee, Jr., President and Chief Executive Officer of Snyder's-Lance. "Diamond has excelled in delivering exceptional product quality and innovation across their entire product portfolio, with products and ideas that work perfectly alongside our Snyder's-Lance brands. We plan to take full advantage of the combined sales forces of Snyder's-Lance and Diamond to drive stronger top line growth than either company could achieve alone. Additionally, we will have an opportunity to grow internationally with Diamond's existing European platform, bringing unique products to consumers in that market. By combining the resources and expertise of Snyder's-Lance and Diamond, we expect to see widening profit margins with additional scale and an expanding line of our better-for-you products. We welcome the Diamond team to the Snyder's-Lance family and look forward to winning together." "The combination of Diamond and Snyder's-Lance provides the opportunity to create significant value for our stockholders and offers immediate benefits for consumers," said Brian J. Driscoll, President and Chief Executive Officer of Diamond Foods. "This transaction will create a diversified, branded snacking portfolio with greater operating scale. In addition, we expect the transaction will provide us with greater resources to further develop new product innovation and broaden our geographic reach and route to market across complementary customer bases. We are excited about the opportunities this combination will create for consumers and our stockholders."