Snyder’s-Lance completes purchase of Diamond Foods

Snyder’s-Lance has completed the purchase of Diamond Foods in a cash-and-stock transaction of approximately $1.91bn, which also includes a debt of approximately $640m.

According to the terms of the deal, Diamond Foods stockholders received 0.775 Snyder’s-Lance shares and $12.50 in cash for every share of Diamond Foods.

Last October, Snyder’s-Lance announced that it signed a definitive agreement to purchase Diamond Foods.

Synder’s-Lance claimed that the addition of snack food brands such as Kettle Brand potato chips, Pop Secret popcorn, Emerald snack nuts, and Diamond of California culinary nuts will position the firm to compete more broadly, as well as have enhanced capabilities.

The company also stated that each of these brands will support its strategic plan while bolstering its annualised net revenue to approximately $2.6bn.

The deal also strengthens Synder’s-Lance’s footprint in healthy snacking segment and its natural food channel presence.

Synder’s-Lance also reaffirmed estimated annualised synergies from cost savings of $75m, around $10m of which would be reinvested in growth plans.

It expects the deal to be immediately accretive to this year’s annualised earnings.

Snyder’s-Lance CEO and president Carl E Lee, Jr. said: "Diamond has been a powerful industry leader in snack foods with exceptional brands.

"With products that deliver exceptional taste, quality and innovation across our entire portfolio, we know the Diamond Foods brands will work perfectly alongside our Snyder’s-Lance lineup. By bringing together the resources and expertise of the Snyder’s-Lance and Diamond teams, we expect to see widening profit margins as we gain synergies and progress though our integration plans over the next 12 to 24 months."

Based in Charlotte, North Carolina, Snyder’s-Lance manufactures pretzels, sandwich crackers, pretzel crackers, potato chips, popcorn, cookies, tortilla chips, restaurant style crackers, nuts and other snacks.

It has manufacturing facilities in North Carolina, Pennsylvania, Indiana, Georgia, Arizona, Massachusetts, Florida, Ohio, California, Oregon and Wisconsin, as well as the UK.

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Image: The addition of brands such as Kettle Chips will position Synder’s-Lance to compete more broadly in the snacks segment. Photo: courtesy of Badagnani via Wikipedia.