CHARLOTTE, N.C.-- Snack maker Snyder’s-Lance is selling Diamond of California, the nut business it acquired earlier this year, to a private equity firm called Blue Road Capital. The deal is expected to close by the end of this year.
The deal will allow Snyder’s-Lance to "focus more resources on the growth opportunities for its core brands,” the company said in a statement Monday.
Specific terms of the deal were not disclosed.
“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, Calif.,” said Snyder’s-Lance CEO Carl Lee.
Snyder’s, known for Hanover’s pretzels and Lance peanut butter sandwich crackers, entered the culinary nuts business when it acquired Diamond Foods Inc. in February 2016. The Diamond of California nut business is operated from the company's Stockton, Calif., facility, and net revenue in the third quarter of 2016 was $42.9 million. Snyder's, based in Charlotte, N.C., has said the purchase of Diamond expands its selection of “better-for-you” offerings. Diamond’s brands include Kettle Brand chips and Pop Secret popcorn.
Snyder’s-Lance is planning to invest $38 million to expand its Charlotte facilities, where it will add 130 new jobs in the next five years, according to The Charlotte Observer. It reported that the Charlotte City Council approved about $631,000 worth of incentives on Nov. 28.
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