Kellogg's to buy Pringles brand for $2.7-Billion
Kellogg's pops top on deal to purchase the Pringles potato chip brand from P&G.
In a $2.7-billion deal, Kellogg’s is poised to purchase the Pringles chip brand from Procter & Gamble (P&G).
The acquisition will make Kellogg’s the second-largest company in the world in the snacks segment, behind Pepsico.
The addition of the Pringles brand joins a strong Kellogg’s franchise, including: Keebler, Cheez-It and Special K Cracker Chips.
“Pringles has an extensive global footprint that catapults Kellogg to the number two position in the worldwide savory snacks category, helping us achieve our objective of becoming a truly global cereal and snacks company,” Kellogg President and chief executive officer John Bryant explains in a released statement.
The deal comes on the heels of the botched attempt by snack food company Diamond Foods to purchase the Pringles brand for $1.5 billion, after allegations of accounting snafus caused an executive shake-up of Diamond last week.
Diamond recently replaced its chief executive officer and chief financial officer after an internal investigation showed it improper accounting payments to walnut growers, forcing Diamond to submit financial results from the past two years.
After the accounting problems were public, stock prices for Diamond dropped making it unable to finance its deal for the Pringles brand.
The Kellogg’s deal for the Pringles brand is expected to be completed by the end of June 2012.