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Diamond Foods takes 26% stake in popcorn maker Metcalfe’s Skinny Limited

Published 13 January 2016

Snacks manufacturer Diamond Foods has acquired 26% stake in ready-to-eat popcorn maker Metcalfe’s Skinny Limited to offer healthy alternatives to consumers.

popcorn

Metcalfe's skinny sells its range of products in the healthy snack and popcorn categories, mainly in the UK. The existing management of the company will continue to function as an independent subsidiary.

Kettle Chips UK managing director Ashley Hicks said: "We are very excited to acquire an interest in Metcalfe's skinny, which is an incredibly innovative, fast-growing, premium brand appealing to 'foodie' consumers looking for lighter great tasting snacks. We look forward to working with the management team to support their future growth ambitions in the on-trend, high growth popcorn snack category in the UK."

The stake acquisition is being funded through cash in hand.

The purchase of minority stake will bolster Diamond Foods' snack offerings for the health-conscious customers who prefer healthy and light yet tasty offerings, reports zacks.com.


Last year, the company also announced takeover by snack maker Snyder's-Lance. Under the deal, Snyder's-Lance will take over all the issued and outstanding shares of common stock of Diamond Foods for approximately $1.91bn, which includes $640m of debt.

The terms of the agreement state that on completion of the acquisition process, Diamond Foods stockholders will receive 0.775 Snyder's-Lance shares and $12.50 in cash for every Diamond Foods share.

The takeover deal, which is slated to be completed in early 2016, had been approved by the board of directors of both the companies.


Image: Diamond Foods takes minority stake in popcorn maker.Photo: Courtesy of KROMKRATHOG/FreeDigitalPhotos.net.