Diamond Foods acquires 26% stake in popcorn maker Metcalfe’s skinny

Diamond Foods has acquired a 26% stake in ready-to-eat popcorn maker Metcalfe’s skinny in a bid to provide its consumers with healthy alternatives.

Based in the UK, Metcalfe’s skinny sells its range of products in the healthy snack and popcorn categories.

Diamond Foods has five brands, which are Kettle Brand potato chips, KETTLE Chips, Pop Secret popcorn, Emerald snack nuts, and Diamond of California culinary nuts.

Funded through cash in hand, the acquisition intends to enhance Diamond Foods’ snack offerings to attract health conscious customers seeking healthy, light yet tasty snacks, reports zacks.com.

Kettle Chips UK managing director Ashley Hicks said: "We are very excited to acquire an interest in Metcalfe’s skinny, which is an incredibly innovative, fast-growing, premium brand appealing to ‘foodie’ consumers looking for lighter, great tasting snacks.

"We look forward to working with the management team to support their future growth ambitions in the on-trend, high growth popcorn snack category in the UK."

The existing management of Metcalfe’s skinny will continue to function as an independent subsidiary.

In 2015, Snyder’s-Lance agreed to purchase Diamond Foods in a combination of cash and stock transaction of $1.91bn, which also includes a debt of approximately $640m.

Under the agreed terms, Diamond Foods stockholders will receive 0.775 Snyder’s-Lance shares and $12.50 in cash for every Diamond Foods share.

The takeover deal with Snyder’s-Lance is expected to be completed in early 2016.