US snack group Diamond Foods has acquired a majority stake in a Netherlands-based potato chip manufacturer, as it seeks to improve its European presence.
The share in Yellow Chips, which already makes vegetable chips under the Kettle brand for Diamond Foods, is reported to be 51%. It will continue to operate as an independent subsidiary and will retain its existing management team of Maarten Brouwer, Vincent van Gorkom and Jess ‘t Lam.
The acquisition, to be financed using cash on-hand, follows the announcement at the end of last year that Diamond Foods’ profits had surpassed initial expectations; first quarter profits totalled $7.7m, revenue increased to more than $246m and the company saw year-on-year growth across its core product categories.
Diamond Foods’ president and CEO, Brian Driscoll, said: “We are excited to acquire an interest in Yellow Chips, which enables us to better compete in the on-trend, high growth vegetable chip category in the UK and Europe.”
Yellow Chips founder Vincent van Gorkom confirmed that the “forward to expanding awareness of [its] products and increasing market penetration in the UK and Europe”.
© FoodBev Media Ltd 2020