Friday, February 17, 2012

Kellogg to Buy Procter & Gamble’s Pringles for $2.7 Billion

Kellogg Co. (K) agreed to acquire Procter & Gamble Co.’s Pringles potato chip business for about $2.7 billion in cash to triple its global snacks sales after a deal with Diamond Foods Inc. (DMND) fell through. The transaction will reduce Kellogg’s earnings this year by as much as 16 cents a share, the Battle Creek, Michigan-based company said today in a statement. Procter & Gamble earlier today terminated a previous plan to sell Pringles to Diamond Foods, according to a separate statement. he purchase gives Kellogg a brand with more than $1.5 billion in sales in 140 countries and a platform to grow in emerging markets. Kellogg Chief Executive Officer John Bryant said on a conference call that the company is working to boost its global snacks business, which includes Cheez-It, Townhouse crackers and Keebler.
Source: Bloomberg

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