Diamond Foods anticipates early closure of Kettle Foods transaction

Diamond Foods anticipates early closure of Kettle Foods transaction
三月 19, 2010
Diamond Foods, Inc. (NASDAQ:DMND) announced today that it has received notice of early termination of the antitrust waiting period for its pending acquisition of Kettle Foods, and now anticipates the transaction will close by March 31, 2010.

Based on the accelerated close, the company now expects to generate $0.47 to $0.50 in non-GAAP EPS during the second half of FY2010, compared to $0.44 to $0.48 reflected in previous guidance. The new guidance reflects continuing strong Diamond operating results and the addition of Kettle operations for four months. In addition, this updated guidance does not reflect costs associated with the transaction and integration, but does include higher interest expense and the dilutive impact of the recent equity offering.

"We plan to invest in promoting the Kettle brand to expand distribution, increase brand equity, and support the introduction of new products. Our strategy is to begin investing in Kettle's future growth by better deploying Diamond's balance sheet against the new Kettle value added retail franchise in the fourth quarter and to reduce less profitable volume in Diamond non-retail channels,"said Michael J. Mendes, Chairman, President and CEO.

Under the previously announced terms of the transaction, Diamond will pay $615 million in cash for Kettle. Transaction-related costs, estimated to be $29 million, are expected to be recorded in Diamond's fiscal 2010 third quarter.
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