Last updated on June 13th, 2024 at 05:13 pm
Snyder’s-Lance and Diamond Foods, two major national snack manufacturers, have signed a definitive agreement by which Snyder’s-Lance will acquire all outstanding shares of Diamond Foods in a cash and stock merger transaction for approximately $1.91 billion. The agreement has been approved by the boards of directors of both companies.
Diamond Foods’ five snack brands include Kettle Brand potato chips, Kettle Chips, Pop Secret popcorn, Emerald snack nuts and Diamond of California culinary nuts.
The transaction expands Snyder’s-Lance’s footprint in “better-for-you” snacking and increases the company’s existing natural food channel presence. Snyder’s-Lance expects transaction will expand and strengthen its Direct Store Delivery network in the U.S. and give it a platform for growth in the U.K. 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 CEO 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.”
“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 CEO 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.”
Completion of the transaction, expected in early 2016, is subject to approval by both Snyder’s-Lance and Diamond stockholders.
