Diamond Foods said it plans to use the net proceeds of the offering to pay a portion of the $615 million purchase price for its previously announced acquisition of Kettle Foods from Lion Capital L.L.P. If it is unable to close the Kettle Foods acquisition, Diamond Foods said it intends to use the net proceeds for general corporate purposes, including repayment of existing indebtedness.
The Kettle Foods transaction is expected to be complete by the end of the year.