- Snyder's-Lance has agreed to acquire Diamond Foods Inc. for $1.91 billion including debt. Both companies' boards of directors approved the deal.
- Per the deal, Diamond Foods stockholders will own 26% of the combined entity.
- Snyder's-Lance says the transaction increases its "better-for-you" snacking marketplace presence and will give it an opportunity to grow in the U.K. and across Europe, according to a news release. The merger is still pending stockholder approval from both companies, though it's anticipated it will close early next year.
"This transaction will create a diversified, branded snacking portfolio with greater operating scale," according to Diamond Foods' president and CEO, Brian J. Driscoll, in a news release. "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 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," Carl E. Lee, Jr., president and CEO of Snyder's-Lance.
A report of Kellogg in talks to purchase Diamond Foods sent Diamond's stock surging Oct. 23 in pre-market trading.
The snacking industry is a huge area for industry growth, particularly in the U.S., as one Mintel survey shows 94% of Americans snack at least once a day.