Diamond Sees Off Competition To Take Control Of Kettle

US snack producer Diamond Foods has agreed to purchase premium potato chip maker Kettle Foods from UK-based private equity firm Lion Capital for US$615mn. Diamond is reported to have seen off competition from United Biscuits, PepsiCo, Hain Celestial and Lance Snacks and was eager to secure the business as part of a move into consumer foods. The bid values Kettle at around 10-times its historic earnings before interest, tax, depreciation and amortisation (EBITDA), which is at the top end of valuations in the consumer goods sector and can be attributed to the brand's strong growth

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