Kellogg Working On $1 Billion Acquisition Of Diamond Foods

The Kellogg Company is in "late-stage talks" to acquire Diamond Foods, the struggling snack company behind brands like Emerald Nuts, Kettle Foods, and Diamond of California, according to the New York Post.

Earlier this month, Diamond Foods was reportedly looking to sell its company in units to competing snack brands, but it looks like Kellogg is ready to extend its own portfolio beyond cereals and other breakfast foods — like Frosted Flakes, Rice Krispies, and Pop Tarts — into more snack options.

Previously, Diamond Foods had reportedly approached Mondelez, but "the process did not go very far."

Speaking to the Post, a source close to the matter described Kellogg, which might have been Diamond Foods' only serious bidder, as "somewhere between aggressive and desperate to use mergers to try to evolve its business away from breakfast cereal."

The final takeover price is expected to be closer to $1.5 billion, but neither Kellogg nor Diamond Foods has released any details about negotiations.