There’s another merger in the works among Wal-Mart suppliers Snyder’s-Lance Inc. and Diamond Foods in a deal valued at $1.91 billion. Both companies have sales offices in Northwest Arkansas and it remains to be seen if these two separate entities will merge into a larger local office. Real estate professionals who serve the supplier segment in Northwest Arkansas say that’s usually the case.
This deal has already been approved by boards of directors for each company. Diamond Foods shareholders will own approximately 26% of the combined company based on current outstanding share counts. Diamond stockholders will receive 0.775 Snyder's-Lance shares and $12.50 in cash per Diamond Foods share upon closing of the transaction.
Synder’s-Lance said this deal will allow for the strategic combination of some of the top snack brands such as Kettle Brand potato chips, Pop Secret popcorn, Emerald snack nuts and Diamond of California culinary nuts.
“Each Diamond Foods brand brings unique strengths that fit with Snyder's-Lance's strategic plan while increasing the company's annualized net revenue to approximately $2.6 billion,” Snyder’s-Lance CEO Carl Lee, noted in the release.
He said this deal also allows Snyder’s-Lance to expand its footprint in “better-for-you” snacks. Lee said this acquisition is also expected to generate synergy savings of $75 million annually of which $10 million will be reinvested in future growth and innovation plans.
"Diamond Foods is a clear industry leader with exceptional brands, and we're excited to bring together these two highly complementary companies," he said.