In a move to bolster its healthier, less processed food offerings, snack company, Snyder’s-Lance has agreed to buy Diamond Foods, the maker of Emerald almonds and Kettle potato chips.

 

Best known for its Snyder’s of Hanover pretzels and Lance crackers, Snyder’s said its purchase will boost international sales as consumers are demanding more natural ingredients and transparent food products.

 

Diamond’s San Francisco-based Kettle brand produces potato chips and popcorn that are either organic or GMO-free, while the Diamond brand of nuts has experienced soaring popularity based on the health-related benefits of almonds and growing global demand for high-protein foods. Meanwhile, the Emerald brand of flavored nuts announced it is shifting to includes only non-GMO ingredients in its offerings.

 

In recent years, the sales growth of organic and more-natural foods have far surpassed the sales growth of more traditional, processed food items such as Kellogg Co.’s U.S. cereals and Kraft Heinz Co.’s Cheez Whiz. In response, big food companies have tried to gain market share by bringing new, simpler products to market and by acquiring smaller, more innovative and flexible brands. Indeed, in recent weeks it was rumored that Kellogg’s was among the bidders trying to gain control of Diamond, with many analysts stating that the food portfolios of the two companies would be highly compatible while Diamond would offset Kellogg’s declining market share and declining sales.

 

The acquisition of Diamond will give Snyder’s a larger presence in this key, natural-foods space, and will bring with it Kettle chips’ UK production plant and European sales distribution, which Snyder’s will leverage to expand its brands across the continent.

 

Commenting on the acquisition, Snyder’s president and chief executive, Carl E. Lee Jr. said that the purchase “obviously expand our better-for-you capabilities to really continue to address what consumers are looking for today.”

 

Since being founded in the early 1900’s, the Snyder’s of Hanover brand grew to produce foods ranging from noodles to cakes through a string of mergers with potato chip producers and bakeries, but by the 1990s, the brand consolidated to mainly being a manufacturer of pretzel snacks. In 2010, Snyder’s merged with Lance Inc., which made crackers, potato chips, and cookies. Recently, the combined company began to acquire natural and organic food brands, and in October 2014, acquired a majority stake in the Late July brand, which produces organic and non-GMO snacks.

 

Once the deal is completed, Charlotte, North Carolina-based Snyder’s will assume approximately $640 million in debt and will be a snack food giant with sales topping $2.6 billion per year.