Diamond Foods Announces Acquisition of a Majority Interest in Yellow Chips
February 04 2015 - 8:00AM
Diamond Foods, Inc. (Nasdaq:DMND) ("Diamond") today announced that
it has acquired a 51% stake of Yellow Chips, a manufacturer of high
quality vegetable and organic potato chips based in the
Netherlands.
Yellow Chips markets its products under private labels and as
its own premium brand, Go Pure®, in Europe. Yellow Chips currently
produces Kettle Brand® Vegetable Chips for Diamond. Following the
acquisition, Yellow Chips' existing management team will continue
to operate the company as an independent subsidiary.
Brian Driscoll, Diamond's President and Chief Executive Officer
said, "We are excited to acquire an interest in Yellow Chips, which
enables us to better compete in the on-trend, high growth vegetable
chip category in the UK and Europe. We are pleased to welcome the
Yellow Chip team, which has done an outstanding job creating a high
quality product for us."
"We look forward to working closely with the Yellow Chips team
to expand European sales and increase distribution in the UK," said
Dominic Lowe, Managing Director of Kettle Chips UK.
Vincent van Gorkom, one of the founders of Yellow Chips and a
member of its management team commented, "We've been working
closely with Diamond over the past several months, and we're
excited to join the team. We will benefit from Diamond's scale,
marketing expertise, and distribution network, and look forward to
expanding awareness of our products and increasing market
penetration in the UK and Europe."
Diamond is financing the acquisition through cash on-hand.
GoPure is a registered trademark in the European Union.
About Diamond Foods
Diamond Foods is an innovative packaged food company focused on
building and energizing brands including Kettle Brand® chips,
Emerald® snack nuts, Pop Secret® popcorn, and Diamond of
California® nuts. Diamond's products are distributed in a wide
range of stores where snacks and culinary nuts are sold. For more
information, visit the Company's corporate web site:
http://www.diamondfoods.com.
About Yellow Chips
Yellow Chips is a manufacturer of high quality vegetable and
organic potato chips based in the Netherlands. Yellow Chips markets
its products under private labels and as its own premium brand, Go
Pure®, a leader in the European organic chip market, to retailers,
organic specialty shops and wholesalers. Yellow Chips is also
distinctive for its eager and open approach to the business, and
its dedicated partnerships with local agrarians. For more
information, visit the Company's corporate web site:
http://www.yellowchips.nl/en/index.php.
Note Regarding Forward Looking Statements
This press release includes forward-looking statements that are
based on our current expectations only as of the date of this press
release. These forward looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from the potential results discussed in the forward-looking
statements. In particular, our predictions about the benefits of
the acquisition to Diamond and Yellow Chips and the future
operation of Yellow Chips could be affected by a variety of factors
including: unexpected consequences of the change in control;
increasing competition; competitive dynamics in the consumer foods
industry and the markets for our and Yellow Chip products,
including new product introductions, advertising activities,
pricing actions, and promotional activities of competitors;
consumer acceptance of new products and product improvements;
changes in the legal and regulatory environment, including labeling
and advertising regulations and litigation; product quality and
safety issues, including recalls and product liability; changes in
consumer preferences and demand for our and Yellow Chip products;
changes in consumer behavior, trends and preferences; consolidation
in the retail environment; and political and economic conditions in
the UK and other European countries. Many of these risks and
uncertainties are discussed in greater detail in the "Risk Factors"
sections of the periodic reports that we file with the SEC. We do
not undertake any obligation to update forward-looking statements
to reflect events or circumstances occurring after the date of this
press release.
CONTACT: Investors:
ICR
Katie Turner
415-230-7952
Media:
ICR
Anton Nicholas/Jessica Liddell
415-445-7431
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