Oaktree Goes Nuts Over Diamond; PE Not So Much Over PIPEs
May 24, 2012
Oaktree Capital Management has agreed to invest $225 million in Diamond Foods (NASDAQ: DMND), the packaged food company behind Kettle Chips, Emerald snack nuts, Pop Secret popcorn and Diamond of California nuts. The new capital will help the company strengthen its position in the walnut industry, grow its snack business and reduce its debt. The investment consists of newly-issued senior notes and warrants to purchase about 4.4 million shares of Diamond common stock.
PIPE transactions, in which a private equity firm makes a minority investment in a publicly traded company, have been a rare treat in the U.S. this year. Although 210 such deals have been completed since the beginning of 2008, less than ten of those are from this year, according to the PitchBook Platform. Accounting for almost a third of the activity, the Financial Services industry has attracted the most PIPE attention since the start of 2008, followed by B2C with a 20% share.
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