CHARLOTTE, N.C. — Snyder’s-Lance, Inc. has completed its $1.91 billion acquisition of San Francisco-based Diamond Foods, Inc. Under the terms of the transaction, first announced in October 2015, Diamond Foods’ shareholders will receive 0.775 Snyder’s-Lance shares and $12.50 in cash per share of Diamond Foods.
The acquisition of Diamond Foods significantly expands Snyder’s-Lance’s snack product portfolio by bringing such brands as Diamond of California branded nuts, Kettle Chips and Pop Secret popcorn into the fold. The move is expected to increase Snyder’s-Lance’s annualized net revenue to approximately $2.6 billion. Additionally, Snyder’s-Lance reaffirmed estimated annualized synergies from cost savings of $75 million, with approximately $10 million to be reinvested in the company’s growth plans.
|Carl E. Lee Jr., president and c.e.o. 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,” said Carl E. Lee Jr., president and chief executive officer of Snyder’s-Lance. “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.”
Separately, Snyder’s-Lance reported financial results for fiscal 2015. Net income in the year ended Jan. 2 was $50,685,000, equal to 72c per share on the common stock, down 74% from $192,591,000, or $2.74 per share, in fiscal 2014. Results for fiscal 2014 included $133,316,000 in discontinued operations. Excluding special items, net income at Snyder’s-Lance in fiscal 2015 totaled $71,941,000, which compared with $65,165,000 in fiscal 2014.Net revenue for fiscal 2015 totaled $579,289,000, up from $578,462,000 in fiscal 2014.