Nuts and snacks seller Diamond Foods Inc enter in to an agreement buy premium potato-chips maker Kettle Foods from a London based private equity firm Lion Capital LLP for $615 million all in cash, to double its presence in the growing potato chip market.
With acquisition of Kettle Company will synergies its revenues and expand its product line with the addition of premium brands such as Spicy Thai and New York Cheddar flavored potato chips to its package nuts and popcorns along with its operational area to North America, Japan, Guam and Western Europe.
Deal is expected to close by the end of fiscal year 2010 and add to earnings of approximately $250 million in fiscal year 2011.
According to company’s chairman and chief executive Michael J. scale, “By adding Kettle, including its talented team of employees, our snack business will have greater scale, which will help us to drive even greater innovation in the snack market.”