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Snyder’s-Lance to divest culinary nut business to Blue Road

FBR Staff Writer Published 30 November 2016

Snyder’s-Lance has agreed to divest its culinary nut business unit Diamond of California to Manhattan based private equity firm Blue Road Capital for an undisclosed price.

The move to sell the culinary nut business is said to be in line with Snyder’s-Lance to channelize its focus on its core brands.

Besides, the snacks company will improve its capital efficiency with the sale expected to be accretive to returns on invested capital and also operating margins.

It was only in February that Snyder’s-Lance had acquired Diamond of California for $1.91bn through which it entered the culinary nut business.

The transaction is expected to close by the year end.

Snyder’s-Lance president and CEO Carl E. Lee, Jr. reiterated that the divestiture will enable the company to concentrate on its core business of snack products.

Carl E. Lee, Jr. added: “Diamond of California is a leader in culinary nuts with a bright future, and should benefit from Blue Road Capital’s expertise, strategic assets and prior investments in the category. This is truly a beneficial transaction for both parties and will be a positive for our employees in Stockton, CA.”

Diamond of California had reported net revenue of $42.9m in the third quarter of this year. Its nut business is run from Snyder's-Lance’s facility in Stockton, California.

On the other hand, Snyder's-Lance, headquartered in Charlotte produces snack foods for the US and international markets.

Some of its products include pretzels, potato chips, pretzel crackers, sandwich crackers, tortilla chips, cookies, popcorn and restaurant style crackers.

Its brands include Snyder's of Hanover, KETTLE Chips, Lance, Snack Factory, Kettle Brand, Late July, Krunchers! and Archway.