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Snyder’s-Lance to Acquire Diamond Foods for ~$1.9 Billion

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Snyder’s-Lance to acquire Diamond Foods

On October 28, 2015, Snyder’s-Lance (LNCE) entered a definitive agreement to acquire Diamond Foods (DMND). Snyder’s-Lance will acquire all outstanding shares of Diamond Foods for ~$1.9 billion, including Diamond Foods’ debt consideration of $640 million.

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Agreement details

Under the agreement, Diamond Foods’ shareholders will receive 0.775 Snyder’s-Lance shares and $12.5 in cash per Diamond Foods share. Diamond Foods’ shareholders are expected to own 26% of Snyder’s-Lance after the close of the transaction.

Snyder’s-Lance expects the transaction to close in early 2016, subject to stockholder and regulatory approvals and other customary closing conditions. The largest Diamond shareholder, Oaktree Capital Management (OAK), has already approved the deal.

According to the New York Post, previously, Kellogg (K) had intended to acquire Diamond Foods at an estimated price of $1.5 billion.

About Diamond Foods

Diamond Foods is a snack-food and culinary nut company, with many offerings that are non-GMO (genetically modified organisms) Project Verified and free from artificial flavors and preservatives. Non-GMO food products are not altered genetically, and thus free from health and environment risks. Diamond Foods generated revenue of $854 million in the fiscal year ended July 31, 2015.

More on Snyder’s-Lance

Snyder’s-Lance is a national snack food company incorporated in North Carolina in 2010, with a merger of Lance Inc. and Snyder’s of Hanover Inc. The company has an expansive branded product portfolio, complementary manufacturing capabilities, and a national distribution network.

Snyder’s-Lance has divested the majority of its private brands to focus on its branded product portfolio. In 2013, private brands contributed 16% of the revenue whereas, in 2014, private brands didn’t contribute to the total revenue. The company generated revenue of $1.6 billion in the fiscal year ended January 3, 2015.

Snyder’s-Lance is a part of the iShares Russell 2000 Value ETF (IWN) and the iShares Russell 2000 ETF (IWM).

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