SAN FRANCISCO (AP) — Snack maker Diamond Foods Inc. on Monday said it will offer 4.5 million shares to help finance its acquisition of Kettle Foods.
Underwriters will have the option to buy an additional 675,000 shares to cover overallotments.
Diamond Foods is buying Kettle Foods, the maker of Kettle potato chips, from private equity firm Lion Capital LLP for $615 million. The deal will be financed by the offering, cash and a new $615 million credit line.
The deal is expected to close by July, when Diamond's fiscal year ends.
Diamond Foods had about 16.6 million shares outstanding as of Jan. 31, according to a recent regulatory filing.
