Diamond Foods Inc. completed its acquisition of Oregon-born Kettle Foods, the San Francisco based company announced today.
Under the terms of the agreement, Diamond paid Kettle's London-based parent, Lion Capital LLC, $615 million in cash for the snack food operation founded in Salem.
Kettle's all-natural chips, nut butters and trail mix are distributed throughout North America, Japan, Guam and Western Europe. It had sales of $235 million in 2008, according to Lion Capitals Web site.
The transaction was financed with proceeds from Diamond's recent common stock offering, borrowings under a new five-year $600 million credit line, and existing cash resources.
"The addition of Kettle Foods greatly strengthens our presence in the snack market," Michael J. Mendes, chairman and CEO of Diamond Foods, said today. "Kettle has been an innovator in the premium, natural potato chip category and is a brand which has demonstrated strong growth. We look forward to investing in the Kettle brand to further build its footprint."
Diamond Foods has focused on acquiring and building food brands that also include Emerald snack nuts, Pop Secret popcorn and Diamond of California nuts.