Diamond Cleared for Kettle Foods Take Over

Diamond Foods said it has received notice of early termination of the antitrust waiting period for its pending acquisition of Kettle Foods for $615m.

The food giant said it expects the transaction to be complete by 31 March 2010.

Diamond said it is planning to generate $0.47 to $0.50 in non-GAAP EPS during Q3 and Q4, compared to $0.44 to $0.48 reflected in previous guidance.

The guidance reflects Diamond’s operating results and the addition of Kettle’s operations for four months.

The updated guidance does not reflect costs associated with the transaction and integration, but includes higher interest expense and the dilutive impact of the recent equity offering.