Diamond to Acquire Kettle Foods

Diamond Foods has signed an agreement with Kettle Foods to acquire its US and UK operations for $615m.

The San Francisco-based company says it expects to double its EBITDA with the addition of Kettle Foods’ revenue of nearly $250m.

The addition of Kettle, which operates in the US and the UK potato chips markets, will increase the company’s addressable market by $9bn, Diamond said.

Diamond expects to complete the transaction by the end of this fiscal year.

The purchase is expected to be funded partially with a five-year $600m credit facility, a future equity offering and available cash resources.