CHARLOTTE, N.C., Feb. 29, 2016 /PRNewswire/
-- Snyder's-Lance, Inc. (NASDAQ: LNCE) announced today the
completion of its acquisition of Diamond Foods, Inc.
(NASDAQ: DMND) ("Diamond Foods" or "Diamond"). Per terms
of the deal, Snyder's-Lance has
acquired all outstanding shares of Diamond Foods in a cash and
stock merger transaction. Under the terms of the agreement,
Diamond Foods stockholders receive 0.775 Snyder's-Lance shares and $12.50 in cash per share of Diamond Foods.
The acquisition creates a powerful, international snack foods
company with an innovative and diversified product portfolio.
The addition of leading snack food brands such as Kettle
Brand® potato chips, KETTLE® Chips, Pop Secret® popcorn, Emerald®
snack nuts, and Diamond of California® culinary nuts positions
Snyder's-Lance to compete more
broadly and with enhanced capabilities. Each of these brands brings
unique strengths to support Snyder's-Lance's strategic plan while
increasing the Company's annualized net revenue to approximately
$2.6 billion. The transaction also
expands the Company's overall footprint in "better-for-you"
snacking and increases its natural food channel presence. The
Company reaffirmed estimated annualized synergies from cost savings
of $75 million, with approximately
$10 million to be re-invested in the
company's growth plans. Snyder's-Lance expects the
transaction to be immediately accretive to 2016 annualized
earnings.
"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. Diamond has been a powerful industry
leader in snack foods with exceptional brands and we're excited to
bring these two great teams together," said Carl E. Lee, Jr.,
President and Chief Executive Officer of Snyder's-Lance.
"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."
Estimates on Consolidate Financial Results
Given that
the transaction with Diamond Foods closed today, management will
provide consolidated estimates after giving full consideration to
purchase accounting, a complete review of base business revenues as
well as timing expectations for synergy capture from
integration. Management expects to provide full year 2016
estimates in early May with Q1 2016 financial results.
About Snyder's-Lance,
Inc.
Snyder's-Lance, Inc.,
headquartered in Charlotte, NC,
manufactures and markets snack foods throughout the United States and internationally.
Snyder's-Lance's products include
pretzels, sandwich crackers, pretzel crackers, potato chips,
popcorn, cookies, tortilla chips, restaurant style crackers, nuts
and other snacks. Snyder's-Lance
has manufacturing facilities in North
Carolina, Pennsylvania,
Indiana, Georgia, Arizona, Massachusetts, Florida, Ohio, California, Oregon, Wisconsin and the United Kingdom. Products are sold under the
Snyder's of Hanover®, Lance®, Cape
Cod®, Snack Factory® Pretzel Crisps®, Late July®, Kettle Brand®,
KETTLE®, Pop Secret®, Emerald®, Diamond of California®, and other
brand names along with a number of third party brands. Products are
distributed internationally through grocery and mass merchandisers,
convenience stores, club stores, food service outlets and other
channels. LNCE-E
Cautionary Information about Forward Looking
Statements
This press release contains statements which may
be forward looking within the meaning of applicable securities
laws. The statements include projections regarding future revenues,
earnings and other results which are based upon the Company's
current expectations and assumptions, which are subject to a number
of risks and uncertainties. Factors that could cause actual
results to differ include general economic conditions or an
economic turndown; volatility in the price or availability of
inputs, including raw materials, packaging, energy and labor; price
competition and industry consolidation; changes in our top retail
customer relationships; inability to maintain profitability in the
face of a consolidating retail environment; failure to successfully
integrate acquisitions or execute divestitures; loss of key
personnel; failure to execute and accomplish our strategy; concerns
with the safety and quality of certain food products or
ingredients; adulterated, misbranded or mislabeled products or
product recalls; disruption of our supply chain; inadequacies in,
or security breaches of, our information technology systems;
improper use of social media; changes in consumer preferences and
tastes or inability to innovate or market our products effectively;
reliance on distribution through a significant number of
independent business owners; protection of our trademarks and other
intellectual property rights; impairment in the carrying value of
goodwill or other intangible assets; new regulations or
legislation; interest rate volatility, and the interests of a few
individuals who control a significant portion of our outstanding
shares of common stock may conflict with those of other
stockholders, which have been discussed in greater detail in our
most recent Form 10-K and other reports filed with the Securities
and Exchange Commission.
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SOURCE Snyder's-Lance, Inc.