US snack food group Snyder’s-Lance has completed the acquisition of Diamond Foods as part of a $1.2bn deal.
The company has acquired all outstanding shares of Diamond Foods in a cash and stock merger, with Diamond Foods stockholders receiving 0.775 Snyder’s-Lance shares and $12.50 in cash for every share of Diamond Foods that they owned.
The acquisition will expand Snyder’s-Lance’s footprint in the better-for-you snacking market and bolster its product portfolio with the additions of brands such as Kettle Chips, Pop Secret popcorn, and both Emerald and Diamond of California brands of snacking and culinary nuts. The company will subsequently be able to “compete more broadly and with enhanced capabilities” within the snack food sector, it said in a statement; the newly acquired brands will bring unique strengths to support Snyder’s-Lance’s strategic plan and increase the company’s net revenue to around $2.6bn per year. The deal will further facilitate annualised synergies from cost savings of $75m, with $10m being reinvested in the company’s growth plans, the North Carolina-based firm added.
Snyder’s-Lance president and chief executive officer Carl E. Lee Jr said: “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. 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 12–24 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.”
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