STOCKTON, Calif. (AP) -- Diamond Foods Inc. said Wednesday it's buying the Pop Secret popcorn business from food maker General Mills Inc. in a cash deal the companies valued at $190 million.
Executives at Diamond Foods, which makes and sells nuts and other snacks under the Emerald and Diamond brands, said the addition of the nation's second-largest microwave popcorn brand will increase the company's presence in grocery store snack aisles.
The Stockton, Calif.-based company expects Pop Secret to add up to $90 million in annualized sales. In 2007, Diamond Foods booked revenue of $522.6 million.
The deal is being financed in part with proceeds from a five-year, $250 million credit facility.
Diamond shares rose 17 cents to close at $26.17, while shares of Minneapolis-based General Mills added 3 cents to finish at $67.09.
