DMDN (Diamond Foods, inc) has been a very volatile stock over the past 12 months, trading as low as $26 and as high as $96. Its agreement with The Procter & Gamble Company (NYSE:PG ) to merge the Pringles business ("Pringles") into Diamond Foods in a transaction valued at$2.35 billion has been the catalyst for the extreme highs and lows. The stock pushed to all-time highs after the news, as the merger would triple the size of Diamonds snack business model.
Some more benefits from the filing:
- Increase scale in U.S. grocery, mass merchandise, drug and convenience channels to gain greater merchandising and distribution influence;
- Leverage Diamond's sales and distribution infrastructure through a more than doubling of snack sales in the U.S. and U.K., which are Pringles' two largest markets;
- Gain a broader global manufacturing and supply chain platform, with access into key growth markets around the world, including Asia, Latin America and Central Europe;
- Increase Diamond's geographic diversity, with international sales accounting for approximately 49 percent of total revenues on a pro forma basis.