Snyder's-Lance, Inc. (NASDAQ: LNCE) announced today the completion of its acquisition of Diamond Foods, Inc. (NASDAQ: DMND) ("Diamond Foods" or "Diamond").
Per terms of the deal, Snyder's-Lance has acquired all outstanding shares of Diamond Foods in a cash and stock merger transaction. Under the terms of the agreement, Diamond Foods stockholders receive 0.775 Snyder's-Lance shares and $12.50 in cash per share of Diamond Foods.
The acquisition creates a powerful, international snack foods company with an innovative and diversified product portfolio.
The addition of leading snack food brands such as Kettle Brand® potato chips, KETTLE® Chips, Pop Secret® popcorn, Emerald® snack nuts, and Diamond of California® culinary nuts positions Snyder's-Lance to compete more broadly and with enhanced capabilities.
Each of these brands brings unique strengths to support Snyder's-Lance's strategic plan while increasing the Company's annualized net revenue to approximately $2.6 billion. The transaction also expands the Company's overall footprint in "better-for-you" snacking and increases its natural food channel presence.
The Company reaffirmed estimated annualized synergies from cost savings of $75 million, with approximately $10 million to be re-invested in the company's growth plans. Snyder's-Lance expects the transaction to be immediately accretive to 2016 annualized earnings.
Carl E. Lee, Jr., President and Chief Executive Officer of Snyder's-Lance
Carl E. Lee, Jr., President and Chief Executive Officer of Snyder's-Lance:
"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 to 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."