- Snyder's-Lance reported full-year 2015 earnings results Monday and announced the completion of its $1.91 billion acquisition of Diamond Foods, first announced in October.
- Full-year 2015 net revenue jumped 2.2% to $1.66 billion, as compared to full-year 2014. Net income for the year excluding special items rose to $71.9 million over $65.2 million in 2014.
- Per the acquisition terms, Diamond Foods stockholders receive 0.775 Snyder's-Lance shares and $12.50 in cash per share of Diamond Foods.
The Diamond Foods acquisition makes a statement for Snyder's-Lance in terms of improving its positioning in the better-for-you snack market. Snyder's-Lance had already made progress in that area on its own, such as introducing more gluten-free products and boosting its investment in Late July organic snacks. Better-for-you brands made up nearly one-third of Snyder's-Lance's sales pre-merger.
Acquiring Diamond Foods is more than just a portfolio boost and alignment with consumer trends. Snyder's-Lance estimates the deal to contribute $75 million in annual cost savings, which will boost the company's 2016 earnings. Snyder's-Lance intends to reinvest approximately $10 million in the company's growth plans.
Snyder's-Lance's recently launched Snack Shack e-commerce operation could prove helpful to Diamond Foods. This would expand reach for Diamond Foods' products online and add more variety to the Snack Shack selection to drive more total e-commerce sales for the company.