Snyders-Lance To Acquire Diamond Foods For 19 Billion

CHARLOTTE, NC -- Snyder's-Lance has agreed to buy Diamond Foods in a cash-and-stock transaction valued at about $1.91 billion, expanding its portfolio healthier snacks.

Stockton, CA-based Diamond Foods' brands include Kettle potato chips, Pop Secret popcorn and Emerald nuts. Snyder's-Lance brands include Snyder's of Hanover and Cape Cod.

Diamond shareholders will receive 0.775 Snyder's-Lance shares and $12.50 in cash per share. The transaction also includes approximately $640 million in debt.

Diamond Foods' biggest shareholder, Oaktree Capital, has agreed to vote in favor of the acquisition. Both companies' boards have approved the deal, which is expected to close early next year. It still needs approval from shareholders of both companies.

Diamond Foods stockholders will own approximately 26% of the combined company once the transaction closes.

Snyder's-Lance Inc., based in Charlotte, NC, estimates the deal will result in $75 million in annual cost savings and increase the company's annualized net revenue to approximately $2.6 billion.

"Diamond has excelled in delivering exceptional product quality and innovation across their entire product portfolio, with products and ideas that work perfectly alongside our Snyder's-Lance brands," said Snyder's-Lance president and chief executive Carl E. Lee Jr. "We plan to take full advantage of the combined sales forces of Snyder's-Lance and Diamond to drive stronger top line growth than either company could achieve alone."

He also said the deal will allow the combined companies to grow internationally, building upon Diamond's existing European platform.

Once the transaction is complete, Diamond Foods president and chief executive Brian Driscoll will join the Snyder's-Lance board.

The transaction is expected to close in early 2016, subject to stockholder and regulatory approvals and other customary closing conditions.

News of the deal comes days after media speculation that the Kellogg Co. was in negotiations to buy Diamond Foods Inc. for more than $1.5 billion.