Snyder’s-Lance to sell Diamond of California business

US-based snack food manufacturer Snyder's-Lance has agreed to sell its Diamond of California culinary nut business to Blue Road Capital.

The financial details of the deal have not divulged by either company.

Snyder's-Lance said that the divestiture of Diamond of California is part of the company’s strategy to focus more resources on the growth opportunities for its core brands.

With this divesture, the company aims to improve its capital efficiency and anticipates the transaction to be closed by the end of this year.

Snyder’s-Lance president and chief executive officer Carl Lee said: “This strategic transaction will allow us to concentrate on our core business of providing our consumers and retail partners with our premium portfolio of snack brands focused on better ingredients, quality and taste.

“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, California."

Snyder’s-Lance entered the culinary nuts business with the acquisition of Diamond Foods in February.

Diamond of California is operated from the Snyder’s-Lance’s facility in Stockton, California.

The sale of Diamond of California will expedite the Snyder’s-Lance plans to reduce leverage.  Wells Fargo Securities acted as financial adviser and Troutman Sanders acted as legal counsel to Snyder’s-Lance in connection with this transaction.