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Snyder's-Lance to acquire Diamond Foods for $1.91 billion

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Staff writer ▼ | October 28, 2015
Snyder's-Lance will acquire all outstanding shares of Diamond Foods in a cash and stock merger transaction for approximately $1.91 billion, including the assumption of approximately $640 million of indebtedness.
Snyder's-Lance
Acquisition   Diamond Foods stockholders will own 26% of the combined company
Under the terms of the agreement, Diamond stockholders will receive 0.775 Snyder's-Lance shares and $12.50 in cash per Diamond Foods share upon closing of the transaction.

The agreement has been approved by the boards of both companies, who recommend that their respective stockholders approve the transaction. Oaktree Capital, Diamond's largest stockholder, has agreed to vote in favor of the transaction.

Diamond Foods stockholders will own approximately 26% of the combined company based on today's outstanding share counts.

The transaction expands Snyder's-Lance's footprint in "better-for-you" snacking and increases the Company's existing natural food channel presence.

Snyder's-Lance expects that this transaction will expand and strengthen its Direct Store Delivery (DSD) network in the United States, and provide Snyder's-Lance with a platform for growth in the UK and across Europe.

Snyder's-Lance expects the transaction to be immediately accretive to the Company's 2016 annualized earnings. The significant synergy potential includes an estimated $75 million in annual cost savings, of which approximately $10 million will be re-invested in the business to achieve the combined company's growth plans.

This excludes transaction-related and integration costs. Synergies are expected to come from increased scale of the combined company, leveraging Snyder's-Lance existing distribution system and cost reductions.

In addition Snyder's-Lance will gain the benefit of tax net operating losses (NOL's) with a net present value of $110 million dollars.


 

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