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Diamond Foods, Maker of Emerald Nuts and Pop Secret, to Sell Company in Pieces

Diamond Foods, Maker of Emerald Nuts and Pop Secret, to Sell Company in Pieces

After failing to find a buyer for the full company and its debt, Diamond Foods is looking to sell specific brands

Diamond Foods produces snacks like Pop Secret, Emerald Nuts, and Diamond of California.

Diamond Foods — the company behind brands like Pop Secret popcorn, Emerald Nuts, Kettle Foods, and Diamond of California, another nut brand — is selling its company piece by piece, after failing to find a buyer for the whole company.

According to the New York Post, Diamond Foods will accept bids on units of the company through the middle of October.

The company, which is reportedly dealing with debt that amounts to five times the sum of its earnings before interest, taxes, depreciation, and amortization (EBITDA), does not have the capacity to face off against its peers. Among the challenges the company faces is the ongoing California drought, which has made nuts more expensive, and profits margins smaller.

Over the summer, Diamond reportedly approached Mondelez — the major candy conglomerate behind Honey Maid, Nabisco, Trident, and several other brands — but “the process did not go very far,” sources told the Post.

During an earnings call earlier this week, CEO Brian Driscoll said that Diamond Foods does not “have the kind of range that’s ideal for where we want to take the company over time,” but did not indicate how the company planned to change that.


San Francisco’s Diamond Foods bought by Snyder’s-Lance for $1.27 Billion

Snyder’s-Lance agreed to buy San Francisco-based Diamond Foods, the snackmaker that settled an accounting probe with regulators last year, for about $1.27 billion to add Kettle potato chips and Emerald almonds to its offerings.

Diamond’s investors will receive 0.775 of a Snyder’s-Lance share and $12.50 in cash for each of their shares, the companies said Wednesday in a statement. The deal also includes the assumption of $640 million in debt, bringing the total transaction value to about $1.91 billion. The equity offer of about $40.46 a share represents a 16 percent premium to Diamond’s closing price Tuesday.

Snyder’s-Lance. shareholders reacted negatively to the purchase, part of a growing investor backlash against acquisitions.

After the company announced the buyout Wednesday morning, Snyder’s shares tumbled 7.8 percent to close at $33.25 in New York. The drop represents the worst one-day decline in almost two years, underscoring concerns that the deal will add to Snyder’s debt without giving it a surefire growth engine.

“Diamond’s business has been uninspired for several years,” said Asit Sharma, an analyst at the Motley Fool. “Even though the brand pieces may fit together, it’s hard to feel energized about this deal if you’re a Snyder’s-Lance shareholder.”

The takeover gives Snyder’s-Lance a more formidable stable of brands, adding Diamond’s nuts, chips and Pop Secret Popcorn businesses to its lineup of Cape Cod chips, Lance crackers and Snyder’s of Hanover pretzels. Snyder’s-Lance also said the acquisition will strengthen its store-delivery network in the U.S. and help the company expand in the U.K. and across Europe. The company forecast annual cost-savings of $75 million and said the purchase will boost earnings per share in 2016.

The deal illustrates how Diamond evolved from a fast-growing company built via acquisitions to a takeover target. Diamond’s bid to buy Pringles from former owner Procter & Gamble in 2012 was derailed after an accounting probe forced it to restate earnings, leading to the ouster of then-Chief Executive Officer Michael J. Mendes. Cereal maker Kellogg snatched up Pringles instead. Diamond agreed to pay $5 million last year to settle U.S. regulatory claims that former executives underreported walnut costs to raise profit.

Shares of Diamond Foods rose 8.9 percent to $38 at the close in New York. The shares have gained 35 percent this year.

Both boards have approved the transaction, and Oaktree Capital, Diamond’s largest shareholder, will vote in favor of the deal.

Snyder’s-Lance, based in Charlotte, North Carolina-based, is the product of the 2010 merger of two snack makers, Lance and Snyder’s of Hanover. Both companies have roots dating back to before World War I.


San Francisco’s Diamond Foods bought by Snyder’s-Lance for $1.27 Billion

Snyder’s-Lance agreed to buy San Francisco-based Diamond Foods, the snackmaker that settled an accounting probe with regulators last year, for about $1.27 billion to add Kettle potato chips and Emerald almonds to its offerings.

Diamond’s investors will receive 0.775 of a Snyder’s-Lance share and $12.50 in cash for each of their shares, the companies said Wednesday in a statement. The deal also includes the assumption of $640 million in debt, bringing the total transaction value to about $1.91 billion. The equity offer of about $40.46 a share represents a 16 percent premium to Diamond’s closing price Tuesday.

Snyder’s-Lance. shareholders reacted negatively to the purchase, part of a growing investor backlash against acquisitions.

After the company announced the buyout Wednesday morning, Snyder’s shares tumbled 7.8 percent to close at $33.25 in New York. The drop represents the worst one-day decline in almost two years, underscoring concerns that the deal will add to Snyder’s debt without giving it a surefire growth engine.

“Diamond’s business has been uninspired for several years,” said Asit Sharma, an analyst at the Motley Fool. “Even though the brand pieces may fit together, it’s hard to feel energized about this deal if you’re a Snyder’s-Lance shareholder.”

The takeover gives Snyder’s-Lance a more formidable stable of brands, adding Diamond’s nuts, chips and Pop Secret Popcorn businesses to its lineup of Cape Cod chips, Lance crackers and Snyder’s of Hanover pretzels. Snyder’s-Lance also said the acquisition will strengthen its store-delivery network in the U.S. and help the company expand in the U.K. and across Europe. The company forecast annual cost-savings of $75 million and said the purchase will boost earnings per share in 2016.

The deal illustrates how Diamond evolved from a fast-growing company built via acquisitions to a takeover target. Diamond’s bid to buy Pringles from former owner Procter & Gamble in 2012 was derailed after an accounting probe forced it to restate earnings, leading to the ouster of then-Chief Executive Officer Michael J. Mendes. Cereal maker Kellogg snatched up Pringles instead. Diamond agreed to pay $5 million last year to settle U.S. regulatory claims that former executives underreported walnut costs to raise profit.

Shares of Diamond Foods rose 8.9 percent to $38 at the close in New York. The shares have gained 35 percent this year.

Both boards have approved the transaction, and Oaktree Capital, Diamond’s largest shareholder, will vote in favor of the deal.

Snyder’s-Lance, based in Charlotte, North Carolina-based, is the product of the 2010 merger of two snack makers, Lance and Snyder’s of Hanover. Both companies have roots dating back to before World War I.


San Francisco’s Diamond Foods bought by Snyder’s-Lance for $1.27 Billion

Snyder’s-Lance agreed to buy San Francisco-based Diamond Foods, the snackmaker that settled an accounting probe with regulators last year, for about $1.27 billion to add Kettle potato chips and Emerald almonds to its offerings.

Diamond’s investors will receive 0.775 of a Snyder’s-Lance share and $12.50 in cash for each of their shares, the companies said Wednesday in a statement. The deal also includes the assumption of $640 million in debt, bringing the total transaction value to about $1.91 billion. The equity offer of about $40.46 a share represents a 16 percent premium to Diamond’s closing price Tuesday.

Snyder’s-Lance. shareholders reacted negatively to the purchase, part of a growing investor backlash against acquisitions.

After the company announced the buyout Wednesday morning, Snyder’s shares tumbled 7.8 percent to close at $33.25 in New York. The drop represents the worst one-day decline in almost two years, underscoring concerns that the deal will add to Snyder’s debt without giving it a surefire growth engine.

“Diamond’s business has been uninspired for several years,” said Asit Sharma, an analyst at the Motley Fool. “Even though the brand pieces may fit together, it’s hard to feel energized about this deal if you’re a Snyder’s-Lance shareholder.”

The takeover gives Snyder’s-Lance a more formidable stable of brands, adding Diamond’s nuts, chips and Pop Secret Popcorn businesses to its lineup of Cape Cod chips, Lance crackers and Snyder’s of Hanover pretzels. Snyder’s-Lance also said the acquisition will strengthen its store-delivery network in the U.S. and help the company expand in the U.K. and across Europe. The company forecast annual cost-savings of $75 million and said the purchase will boost earnings per share in 2016.

The deal illustrates how Diamond evolved from a fast-growing company built via acquisitions to a takeover target. Diamond’s bid to buy Pringles from former owner Procter & Gamble in 2012 was derailed after an accounting probe forced it to restate earnings, leading to the ouster of then-Chief Executive Officer Michael J. Mendes. Cereal maker Kellogg snatched up Pringles instead. Diamond agreed to pay $5 million last year to settle U.S. regulatory claims that former executives underreported walnut costs to raise profit.

Shares of Diamond Foods rose 8.9 percent to $38 at the close in New York. The shares have gained 35 percent this year.

Both boards have approved the transaction, and Oaktree Capital, Diamond’s largest shareholder, will vote in favor of the deal.

Snyder’s-Lance, based in Charlotte, North Carolina-based, is the product of the 2010 merger of two snack makers, Lance and Snyder’s of Hanover. Both companies have roots dating back to before World War I.


San Francisco’s Diamond Foods bought by Snyder’s-Lance for $1.27 Billion

Snyder’s-Lance agreed to buy San Francisco-based Diamond Foods, the snackmaker that settled an accounting probe with regulators last year, for about $1.27 billion to add Kettle potato chips and Emerald almonds to its offerings.

Diamond’s investors will receive 0.775 of a Snyder’s-Lance share and $12.50 in cash for each of their shares, the companies said Wednesday in a statement. The deal also includes the assumption of $640 million in debt, bringing the total transaction value to about $1.91 billion. The equity offer of about $40.46 a share represents a 16 percent premium to Diamond’s closing price Tuesday.

Snyder’s-Lance. shareholders reacted negatively to the purchase, part of a growing investor backlash against acquisitions.

After the company announced the buyout Wednesday morning, Snyder’s shares tumbled 7.8 percent to close at $33.25 in New York. The drop represents the worst one-day decline in almost two years, underscoring concerns that the deal will add to Snyder’s debt without giving it a surefire growth engine.

“Diamond’s business has been uninspired for several years,” said Asit Sharma, an analyst at the Motley Fool. “Even though the brand pieces may fit together, it’s hard to feel energized about this deal if you’re a Snyder’s-Lance shareholder.”

The takeover gives Snyder’s-Lance a more formidable stable of brands, adding Diamond’s nuts, chips and Pop Secret Popcorn businesses to its lineup of Cape Cod chips, Lance crackers and Snyder’s of Hanover pretzels. Snyder’s-Lance also said the acquisition will strengthen its store-delivery network in the U.S. and help the company expand in the U.K. and across Europe. The company forecast annual cost-savings of $75 million and said the purchase will boost earnings per share in 2016.

The deal illustrates how Diamond evolved from a fast-growing company built via acquisitions to a takeover target. Diamond’s bid to buy Pringles from former owner Procter & Gamble in 2012 was derailed after an accounting probe forced it to restate earnings, leading to the ouster of then-Chief Executive Officer Michael J. Mendes. Cereal maker Kellogg snatched up Pringles instead. Diamond agreed to pay $5 million last year to settle U.S. regulatory claims that former executives underreported walnut costs to raise profit.

Shares of Diamond Foods rose 8.9 percent to $38 at the close in New York. The shares have gained 35 percent this year.

Both boards have approved the transaction, and Oaktree Capital, Diamond’s largest shareholder, will vote in favor of the deal.

Snyder’s-Lance, based in Charlotte, North Carolina-based, is the product of the 2010 merger of two snack makers, Lance and Snyder’s of Hanover. Both companies have roots dating back to before World War I.


San Francisco’s Diamond Foods bought by Snyder’s-Lance for $1.27 Billion

Snyder’s-Lance agreed to buy San Francisco-based Diamond Foods, the snackmaker that settled an accounting probe with regulators last year, for about $1.27 billion to add Kettle potato chips and Emerald almonds to its offerings.

Diamond’s investors will receive 0.775 of a Snyder’s-Lance share and $12.50 in cash for each of their shares, the companies said Wednesday in a statement. The deal also includes the assumption of $640 million in debt, bringing the total transaction value to about $1.91 billion. The equity offer of about $40.46 a share represents a 16 percent premium to Diamond’s closing price Tuesday.

Snyder’s-Lance. shareholders reacted negatively to the purchase, part of a growing investor backlash against acquisitions.

After the company announced the buyout Wednesday morning, Snyder’s shares tumbled 7.8 percent to close at $33.25 in New York. The drop represents the worst one-day decline in almost two years, underscoring concerns that the deal will add to Snyder’s debt without giving it a surefire growth engine.

“Diamond’s business has been uninspired for several years,” said Asit Sharma, an analyst at the Motley Fool. “Even though the brand pieces may fit together, it’s hard to feel energized about this deal if you’re a Snyder’s-Lance shareholder.”

The takeover gives Snyder’s-Lance a more formidable stable of brands, adding Diamond’s nuts, chips and Pop Secret Popcorn businesses to its lineup of Cape Cod chips, Lance crackers and Snyder’s of Hanover pretzels. Snyder’s-Lance also said the acquisition will strengthen its store-delivery network in the U.S. and help the company expand in the U.K. and across Europe. The company forecast annual cost-savings of $75 million and said the purchase will boost earnings per share in 2016.

The deal illustrates how Diamond evolved from a fast-growing company built via acquisitions to a takeover target. Diamond’s bid to buy Pringles from former owner Procter & Gamble in 2012 was derailed after an accounting probe forced it to restate earnings, leading to the ouster of then-Chief Executive Officer Michael J. Mendes. Cereal maker Kellogg snatched up Pringles instead. Diamond agreed to pay $5 million last year to settle U.S. regulatory claims that former executives underreported walnut costs to raise profit.

Shares of Diamond Foods rose 8.9 percent to $38 at the close in New York. The shares have gained 35 percent this year.

Both boards have approved the transaction, and Oaktree Capital, Diamond’s largest shareholder, will vote in favor of the deal.

Snyder’s-Lance, based in Charlotte, North Carolina-based, is the product of the 2010 merger of two snack makers, Lance and Snyder’s of Hanover. Both companies have roots dating back to before World War I.


San Francisco’s Diamond Foods bought by Snyder’s-Lance for $1.27 Billion

Snyder’s-Lance agreed to buy San Francisco-based Diamond Foods, the snackmaker that settled an accounting probe with regulators last year, for about $1.27 billion to add Kettle potato chips and Emerald almonds to its offerings.

Diamond’s investors will receive 0.775 of a Snyder’s-Lance share and $12.50 in cash for each of their shares, the companies said Wednesday in a statement. The deal also includes the assumption of $640 million in debt, bringing the total transaction value to about $1.91 billion. The equity offer of about $40.46 a share represents a 16 percent premium to Diamond’s closing price Tuesday.

Snyder’s-Lance. shareholders reacted negatively to the purchase, part of a growing investor backlash against acquisitions.

After the company announced the buyout Wednesday morning, Snyder’s shares tumbled 7.8 percent to close at $33.25 in New York. The drop represents the worst one-day decline in almost two years, underscoring concerns that the deal will add to Snyder’s debt without giving it a surefire growth engine.

“Diamond’s business has been uninspired for several years,” said Asit Sharma, an analyst at the Motley Fool. “Even though the brand pieces may fit together, it’s hard to feel energized about this deal if you’re a Snyder’s-Lance shareholder.”

The takeover gives Snyder’s-Lance a more formidable stable of brands, adding Diamond’s nuts, chips and Pop Secret Popcorn businesses to its lineup of Cape Cod chips, Lance crackers and Snyder’s of Hanover pretzels. Snyder’s-Lance also said the acquisition will strengthen its store-delivery network in the U.S. and help the company expand in the U.K. and across Europe. The company forecast annual cost-savings of $75 million and said the purchase will boost earnings per share in 2016.

The deal illustrates how Diamond evolved from a fast-growing company built via acquisitions to a takeover target. Diamond’s bid to buy Pringles from former owner Procter & Gamble in 2012 was derailed after an accounting probe forced it to restate earnings, leading to the ouster of then-Chief Executive Officer Michael J. Mendes. Cereal maker Kellogg snatched up Pringles instead. Diamond agreed to pay $5 million last year to settle U.S. regulatory claims that former executives underreported walnut costs to raise profit.

Shares of Diamond Foods rose 8.9 percent to $38 at the close in New York. The shares have gained 35 percent this year.

Both boards have approved the transaction, and Oaktree Capital, Diamond’s largest shareholder, will vote in favor of the deal.

Snyder’s-Lance, based in Charlotte, North Carolina-based, is the product of the 2010 merger of two snack makers, Lance and Snyder’s of Hanover. Both companies have roots dating back to before World War I.


San Francisco’s Diamond Foods bought by Snyder’s-Lance for $1.27 Billion

Snyder’s-Lance agreed to buy San Francisco-based Diamond Foods, the snackmaker that settled an accounting probe with regulators last year, for about $1.27 billion to add Kettle potato chips and Emerald almonds to its offerings.

Diamond’s investors will receive 0.775 of a Snyder’s-Lance share and $12.50 in cash for each of their shares, the companies said Wednesday in a statement. The deal also includes the assumption of $640 million in debt, bringing the total transaction value to about $1.91 billion. The equity offer of about $40.46 a share represents a 16 percent premium to Diamond’s closing price Tuesday.

Snyder’s-Lance. shareholders reacted negatively to the purchase, part of a growing investor backlash against acquisitions.

After the company announced the buyout Wednesday morning, Snyder’s shares tumbled 7.8 percent to close at $33.25 in New York. The drop represents the worst one-day decline in almost two years, underscoring concerns that the deal will add to Snyder’s debt without giving it a surefire growth engine.

“Diamond’s business has been uninspired for several years,” said Asit Sharma, an analyst at the Motley Fool. “Even though the brand pieces may fit together, it’s hard to feel energized about this deal if you’re a Snyder’s-Lance shareholder.”

The takeover gives Snyder’s-Lance a more formidable stable of brands, adding Diamond’s nuts, chips and Pop Secret Popcorn businesses to its lineup of Cape Cod chips, Lance crackers and Snyder’s of Hanover pretzels. Snyder’s-Lance also said the acquisition will strengthen its store-delivery network in the U.S. and help the company expand in the U.K. and across Europe. The company forecast annual cost-savings of $75 million and said the purchase will boost earnings per share in 2016.

The deal illustrates how Diamond evolved from a fast-growing company built via acquisitions to a takeover target. Diamond’s bid to buy Pringles from former owner Procter & Gamble in 2012 was derailed after an accounting probe forced it to restate earnings, leading to the ouster of then-Chief Executive Officer Michael J. Mendes. Cereal maker Kellogg snatched up Pringles instead. Diamond agreed to pay $5 million last year to settle U.S. regulatory claims that former executives underreported walnut costs to raise profit.

Shares of Diamond Foods rose 8.9 percent to $38 at the close in New York. The shares have gained 35 percent this year.

Both boards have approved the transaction, and Oaktree Capital, Diamond’s largest shareholder, will vote in favor of the deal.

Snyder’s-Lance, based in Charlotte, North Carolina-based, is the product of the 2010 merger of two snack makers, Lance and Snyder’s of Hanover. Both companies have roots dating back to before World War I.


San Francisco’s Diamond Foods bought by Snyder’s-Lance for $1.27 Billion

Snyder’s-Lance agreed to buy San Francisco-based Diamond Foods, the snackmaker that settled an accounting probe with regulators last year, for about $1.27 billion to add Kettle potato chips and Emerald almonds to its offerings.

Diamond’s investors will receive 0.775 of a Snyder’s-Lance share and $12.50 in cash for each of their shares, the companies said Wednesday in a statement. The deal also includes the assumption of $640 million in debt, bringing the total transaction value to about $1.91 billion. The equity offer of about $40.46 a share represents a 16 percent premium to Diamond’s closing price Tuesday.

Snyder’s-Lance. shareholders reacted negatively to the purchase, part of a growing investor backlash against acquisitions.

After the company announced the buyout Wednesday morning, Snyder’s shares tumbled 7.8 percent to close at $33.25 in New York. The drop represents the worst one-day decline in almost two years, underscoring concerns that the deal will add to Snyder’s debt without giving it a surefire growth engine.

“Diamond’s business has been uninspired for several years,” said Asit Sharma, an analyst at the Motley Fool. “Even though the brand pieces may fit together, it’s hard to feel energized about this deal if you’re a Snyder’s-Lance shareholder.”

The takeover gives Snyder’s-Lance a more formidable stable of brands, adding Diamond’s nuts, chips and Pop Secret Popcorn businesses to its lineup of Cape Cod chips, Lance crackers and Snyder’s of Hanover pretzels. Snyder’s-Lance also said the acquisition will strengthen its store-delivery network in the U.S. and help the company expand in the U.K. and across Europe. The company forecast annual cost-savings of $75 million and said the purchase will boost earnings per share in 2016.

The deal illustrates how Diamond evolved from a fast-growing company built via acquisitions to a takeover target. Diamond’s bid to buy Pringles from former owner Procter & Gamble in 2012 was derailed after an accounting probe forced it to restate earnings, leading to the ouster of then-Chief Executive Officer Michael J. Mendes. Cereal maker Kellogg snatched up Pringles instead. Diamond agreed to pay $5 million last year to settle U.S. regulatory claims that former executives underreported walnut costs to raise profit.

Shares of Diamond Foods rose 8.9 percent to $38 at the close in New York. The shares have gained 35 percent this year.

Both boards have approved the transaction, and Oaktree Capital, Diamond’s largest shareholder, will vote in favor of the deal.

Snyder’s-Lance, based in Charlotte, North Carolina-based, is the product of the 2010 merger of two snack makers, Lance and Snyder’s of Hanover. Both companies have roots dating back to before World War I.


San Francisco’s Diamond Foods bought by Snyder’s-Lance for $1.27 Billion

Snyder’s-Lance agreed to buy San Francisco-based Diamond Foods, the snackmaker that settled an accounting probe with regulators last year, for about $1.27 billion to add Kettle potato chips and Emerald almonds to its offerings.

Diamond’s investors will receive 0.775 of a Snyder’s-Lance share and $12.50 in cash for each of their shares, the companies said Wednesday in a statement. The deal also includes the assumption of $640 million in debt, bringing the total transaction value to about $1.91 billion. The equity offer of about $40.46 a share represents a 16 percent premium to Diamond’s closing price Tuesday.

Snyder’s-Lance. shareholders reacted negatively to the purchase, part of a growing investor backlash against acquisitions.

After the company announced the buyout Wednesday morning, Snyder’s shares tumbled 7.8 percent to close at $33.25 in New York. The drop represents the worst one-day decline in almost two years, underscoring concerns that the deal will add to Snyder’s debt without giving it a surefire growth engine.

“Diamond’s business has been uninspired for several years,” said Asit Sharma, an analyst at the Motley Fool. “Even though the brand pieces may fit together, it’s hard to feel energized about this deal if you’re a Snyder’s-Lance shareholder.”

The takeover gives Snyder’s-Lance a more formidable stable of brands, adding Diamond’s nuts, chips and Pop Secret Popcorn businesses to its lineup of Cape Cod chips, Lance crackers and Snyder’s of Hanover pretzels. Snyder’s-Lance also said the acquisition will strengthen its store-delivery network in the U.S. and help the company expand in the U.K. and across Europe. The company forecast annual cost-savings of $75 million and said the purchase will boost earnings per share in 2016.

The deal illustrates how Diamond evolved from a fast-growing company built via acquisitions to a takeover target. Diamond’s bid to buy Pringles from former owner Procter & Gamble in 2012 was derailed after an accounting probe forced it to restate earnings, leading to the ouster of then-Chief Executive Officer Michael J. Mendes. Cereal maker Kellogg snatched up Pringles instead. Diamond agreed to pay $5 million last year to settle U.S. regulatory claims that former executives underreported walnut costs to raise profit.

Shares of Diamond Foods rose 8.9 percent to $38 at the close in New York. The shares have gained 35 percent this year.

Both boards have approved the transaction, and Oaktree Capital, Diamond’s largest shareholder, will vote in favor of the deal.

Snyder’s-Lance, based in Charlotte, North Carolina-based, is the product of the 2010 merger of two snack makers, Lance and Snyder’s of Hanover. Both companies have roots dating back to before World War I.


San Francisco’s Diamond Foods bought by Snyder’s-Lance for $1.27 Billion

Snyder’s-Lance agreed to buy San Francisco-based Diamond Foods, the snackmaker that settled an accounting probe with regulators last year, for about $1.27 billion to add Kettle potato chips and Emerald almonds to its offerings.

Diamond’s investors will receive 0.775 of a Snyder’s-Lance share and $12.50 in cash for each of their shares, the companies said Wednesday in a statement. The deal also includes the assumption of $640 million in debt, bringing the total transaction value to about $1.91 billion. The equity offer of about $40.46 a share represents a 16 percent premium to Diamond’s closing price Tuesday.

Snyder’s-Lance. shareholders reacted negatively to the purchase, part of a growing investor backlash against acquisitions.

After the company announced the buyout Wednesday morning, Snyder’s shares tumbled 7.8 percent to close at $33.25 in New York. The drop represents the worst one-day decline in almost two years, underscoring concerns that the deal will add to Snyder’s debt without giving it a surefire growth engine.

“Diamond’s business has been uninspired for several years,” said Asit Sharma, an analyst at the Motley Fool. “Even though the brand pieces may fit together, it’s hard to feel energized about this deal if you’re a Snyder’s-Lance shareholder.”

The takeover gives Snyder’s-Lance a more formidable stable of brands, adding Diamond’s nuts, chips and Pop Secret Popcorn businesses to its lineup of Cape Cod chips, Lance crackers and Snyder’s of Hanover pretzels. Snyder’s-Lance also said the acquisition will strengthen its store-delivery network in the U.S. and help the company expand in the U.K. and across Europe. The company forecast annual cost-savings of $75 million and said the purchase will boost earnings per share in 2016.

The deal illustrates how Diamond evolved from a fast-growing company built via acquisitions to a takeover target. Diamond’s bid to buy Pringles from former owner Procter & Gamble in 2012 was derailed after an accounting probe forced it to restate earnings, leading to the ouster of then-Chief Executive Officer Michael J. Mendes. Cereal maker Kellogg snatched up Pringles instead. Diamond agreed to pay $5 million last year to settle U.S. regulatory claims that former executives underreported walnut costs to raise profit.

Shares of Diamond Foods rose 8.9 percent to $38 at the close in New York. The shares have gained 35 percent this year.

Both boards have approved the transaction, and Oaktree Capital, Diamond’s largest shareholder, will vote in favor of the deal.

Snyder’s-Lance, based in Charlotte, North Carolina-based, is the product of the 2010 merger of two snack makers, Lance and Snyder’s of Hanover. Both companies have roots dating back to before World War I.


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