Diamond Foods to acquire Pop Secret popcorn
August 13, 2008
by FoodBusinessNews.net Staff
STOCKTON, CALIF. — Diamond Foods, Inc. has signed an agreement to acquire the Pop Secret microwave popcorn business from General Mills, Inc. for approximately $190 million. General Mills said it expects to receive proceeds of about $160 million after costs.
The acquisition, which is subject to regulatory approval and is expected to be completed this fall, will add annualized sales of between $85 million and $95 million, Diamond Foods said.
"We are very excited about the addition of Pop Secret to our snack portfolio," said Michael J. Mendes, president and chief executive officer of Diamond Foods. "It will significantly broaden our presence in the snack aisle and increase promotional efficiency, while leveraging our existing supply chain and corporate infrastructure.
"We have taken a very deliberate approach toward screening potential acquisitions by focusing on premium brands that are targeted toward customer segments we currently serve and provide solid financial returns for our shareholders. Pop Secret fits our acquisition criteria, and we plan to invest behind the brand to position it for long-term success."
Pop Secret was introduced in 1985 and is the second largest brand in the microwave popcorn category with 25% share in U.S. grocery stores.
Diamond Foods specializes in processing, marketing and distributing culinary nuts and snack products under the Diamond and Emerald brands.