CHARLOTTE, N.C. — Snack maker Snyder’s-Lance announced Wednesday that it had reached an agreement to acquire all of Diamond Foods’ outstanding shares in a $1.91 billion deal. The company will pay Diamond’s shareholders $12.50 in cash alongside 0.775 Snyder’s-Lance shares once the transaction closes, giving them a 26% ownership.
"Diamond Foods is a clear industry leader with exceptional brands, and we're excited to bring together these two highly complementary companies," Snyder’s-Lance president and CEO Carl Lee, Jr. said. “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. Additionally, we will have an opportunity to grow internationally with Diamond's existing European platform, bringing unique products to consumers in that market.”
The combination of the two companies will bring under one portfolio such snack brands as Pop Secret, Kettle Chips, Cape Cod snacks, Emerald Nuts and Snyder’s of Hanover.
“The combination of Diamond and Snyder's-Lance provides the opportunity to create significant value for our stockholders and offers immediate benefits for consumers," Diamond Foods president CEO Brian 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.”
Driscoll will join Snyder’s-Lance’s board of directors once the transaction closes, likely in early 2016.