Diamond Foods has acquired 51% stake in Netherlands-based vegetable and organic potato chips producer Yellow Chips for an undisclosed amount.
Yellow Chips, which currently produces Kettle Brand Vegetable Chips for Diamond, markets its products under private labels and as its own premium brand, Go Pure across Europe.
Upon completion of the acquisition, Yellow Chips' existing management team will continue to operate the company as an independent subsidiary.
Diamond Foods president and CEO Brian Driscoll said: "We are excited to acquire an interest in Yellow Chips, which enables us to better compete in the on-trend, high growth vegetable chip category in the UK and Europe. We are pleased to welcome the Yellow Chip team, which has done an outstanding job creating a high quality product for us."
Kettle Chips UK is seeking to expand sales in Europe and increase distribution across the UK, by collaborating with Yellow Chips.
Yellow Chips co-founder Vincent van Gorkom said: "We've been working closely with Diamond over the past several months, and we're excited to join the team.
"We will benefit from Diamond's scale, marketing expertise, and distribution network, and look forward to expanding awareness of our products and increasing market penetration in the UK and Europe."
