Snyder’s-Lance Inc., Charlotte, NC, completed of its acquisition of Diamond Foods Inc., San Francisco, on Feb. 29. Per terms of the deal, Snyder’s-Lance has acquired all outstanding shares of Diamond Foods in a cash and stock merger transaction. Diamond Foods stockholders received 0.775 Snyder’s-Lance shares and $12.50 in cash per share of Diamond Foods.
The acquisition creates an international snack foods company with an innovative and diversified product portfolio. The addition of snack food brands such as Kettle Brand potato chips, KETTLE Chips, Pop Secret popcorn, Emerald snack nuts and Diamond of California culinary nuts positions Snyder’s-Lance to compete more broadly and with enhanced capabilities. According to Snyder’s-Lance, each of these brands brings unique strengths to support its strategic plan, while increasing its annualized net revenue to approximately $2.6 billion.
The transaction also expands Snyder’s-Lance’s overall footprint in “better-for-you” snacking and increases its natural food channel presence. The company reaffirmed estimated annualized synergies from cost savings of $75 million, with approximately $10 million to be reinvested in its growth plans. Snyder’s-Lance expects the transaction to be immediately accretive to 2016 annualized earnings.
“We are very excited to have completed the acquisition of Diamond Foods and look forward to starting this new chapter in our company's history,” says Carl E. Lee Jr., president and CEO of Snyder’s-Lance. “Diamond has been a powerful industry leader in snack foods with exceptional brands, and we’re excited to bring these two great teams together. 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. With the combined power of our sales teams, we will continue driving new product innovation as we broaden our geographic and consumer reach. We welcome the Diamond team to the Snyder's-Lance family and look forward to winning together."