Embattled US snack foods company Diamond Foods has reportedly in talks to sell a stake in the business to private-equity firms.
According to The Wall Street Journal, the Kettle Chips owner has held discussions with buy-out houses including KKR and TPG over a possible minority investment.
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The report came an hour after Diamond had announced it would suspend dividends to shareholders as part of a new deal with its lenders.
The new agreement will mean the interest rate Diamond is charged on its credit facility will increase and the company will pay a one-off “forebearance fee” to lenders.
While announcing the new lending deal, Diamond also said it was continuing to work with recently-appointed financial advisors from Dean Bradley Osborne “to explore capital alternatives to strengthen the company’s balance sheet”.
Officials for Diamond could not be reached for immediate comment on the WSJ report. KKR and TPG refused to comment when contacted by just-food.
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By GlobalDataThe company has endured a tumultuous six months that have included an accounting scandal that led to the exit of its CEO and CFO and to the derailment of its plan to buy snacks brand Pringles.
The improper accounting of payments to walnut growers, which was revealed last month after an internal investigation and led to the exit of CEO Michael Mendes and CFO Steven Neil, has meant the company will have to restate its financial results for the last two years.
