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CHARLOTTE, N.C. and SAN FRANCISCO — Snyder's-Lance Inc. signed an agreement with Diamond Foods Inc. through which it will acquire all of Diamond's outstanding shares through an approximately $1.91-billion cash and stock merger transaction. This includes the assumption of approximately $640 million of debt.
Diamond stockholders will receive 0.775 of a Snyder's-Lance share, as well as $13.50 in cash per Diamond share owned upon closing of the deal. Diamond shareholders will own approximately 26 percent of the combined company based on current outstanding share counts.
The acquisition expands Snyder's-Lance's better-for-you snacking footprint and increases its existing natural food channel presence.
"Diamond Foods is a clear industry leader with exceptional brands, and we're excited to bring together these two highly complementary companies," stated Snyder's-Lance President and CEO Carl E. Lee Jr. "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. 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."
Snyder's-Lance expects the transaction to expand and strengthen its direct-store delivery network in the United States and provide it with a platform for growth in the United Kingdom and across Europe.
"Additionally, we will have an opportunity to grow internationally with Diamond's existing European platform, bringing unique products to consumers in that market," Lee added. "By combining the resources and expertise of Snyder's-Lance and Diamond, we expect to see widening profit margins with additional scale and an expanding line of our better-for-you products. We welcome the Diamond team to the Snyder's-Lance family and look forward to winning together."
The acquisition is expected to close in early 2016, subject to stockholder and regulatory approvals, as well as other customary closing conditions. Diamond Foods President and CEO Brian J. Driscoll will join the Snyder's-Lance board of direction following the closing.
"The combination of Diamond and Snyder's-Lance provides the opportunity to create significant value for our stockholders and offers immediate benefits for consumers," Driscoll said. "This transaction will create a diversified, branded snacking portfolio with greater operating scale. In addition, we expect the transaction will provide us with greater resources to further develop new product innovation and broaden our geographic reach and route to market across complementary customer bases. We are excited about the opportunities this combination will create for consumers and our stockholders."