In the bag: Snyder's-Lance completes Diamond Foods acquisition
The company said the deal would take its annual net revenue to around $2.6bn, while synergies between the two businesses will enable it to grow profit margins.
Snyder's-Lance sales for the year ending January 2 2016 rose 2.2% year-on-year to $1.6bn, and were up 4.1% excluding the impact of an additional 53rd week in 2014.
First announced by the businesses in October, the deal has seen Snyder’s-Lance acquire all shares of Diamond in a cash and stock merger transaction for around $1.91bn.
Snyder's-Lance said the acquisition would enable it to compete “more broadly and with enhanced capabilities”, and would give the business a larger footprint in the better-for-you and natural snacks markets.
The company added that it expected the acquisition to be immediately accretive to 2016 annualized earnings, and has estimated cost savings of $75m a year through synergies, with about $10m to be re-invested in the company's growth plans.
“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,” said Snyder's-Lance president and chief executive officer Carl E Lee, Jr, adding the combined sales teams and new product innovation would broaden the business’s geographic and consumer reach.
'A powerful industry leader'
“Diamond has been a powerful industry leader in snack foods with exceptional brands and we're excited to bring these two great teams together," he said.
The combined businesses will include core Synder’s-Lance brands such as Snyder's of Hanover, Lance, Cape Cod, Snack Factory, Pretzel Crisps; and Diamond Foods brands including Kettle, Emerald Nuts and Pop Secret Popcorn.
In January, Diamond announced it had bought a 26% stake in UK food business Metcalfe’s Skinny Limited, owner of fast-growing premium popcorn brand Metcalfe’s Skinny Popcorn. Metcalfe’s, which will continue to be run by the existing management team as an independent subsidiary, was co-founded by Robert Jakobi and Julian Metcalfe, who was also the co-founder of the Pret A Manger and Itsu dining out chains.
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