Diamond Foods announced yesterday (25 February) that it has struck a deal to buy Kettle Foods from private-equity group Lion Capital.

Here are some key facts about the two companies and the deal itself.

1. Kettle Foods was founded in Salem, Oregon, in 1978 before expanding to the UK in 1989. The company manufactures premium potato chips and distributes them throughout North America, Japan, Guam and Western Europe. Kettle’s largest sales markets are the US and UK.

2. Kettle employs about 730 people and has manufacturing facilities in in Salem, Beloit, Wisconsin, Norwich, UK.

3. Kettle was acquired by London-based private equity group Lion Capital in 2006 for an estimated US$280-320m

4. Diamond Foods operates two business units: its consumer snacks business, which produces brands including Emerald nuts, and a culinary nut business.

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5. Diamond management has focused on expanding its consumer snacks business: in 2005, consumer retail accounted for 49% of sales, by 2009 this figure had increased to over 80% of sales.

6. Diamond has fuelled the expansion of its consumer retail business through acquisitions: in May 2006 the company took control of trial mix, nut and seed manufacturer Harmony for $19m and in August 2008 the group acquired microwave popcorn maker Pop Secret for $190m.

7. Kettle Foods generated sales of $235m in 2008. According to Diamond, on a pro forma basis, the addition of Kettle would add more than $250m in revenues, more than double the size of its snacks business and almost double Diamond’s EBITDA. The company said it expects the deal to add to earnings in fiscal 2011.

8. Diamond Foods has agreed to pay Lion Capital $615m for Kettle. The deal will be funded through a new five-year $600m credit facility, an equity offering and available cash, Diamond said.