Kellogg’s agrees to buy Procter & Gamble’s Pringles for nearly $2.7 billion

By on Feb 15, 2012 in Business, Food, United States, World Comments

Kellogg Company announced on Wednesday, February 15, 2012 its agreement with Procter & Gamble’s (P&G) in buying Pringles for almost $2.7 billion,

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According to a press release at that day, the cereal company has agreed to buy Pringles crisps brand from P&G for $2.695 billion, with the completion of transaction is being expected this summer.

As noted by Kellogg’s, acquiring Pringles is an excellent strategic fit for the company to make an advanced and strong position in the snacks global market as it already has in cereal business.

“We are excited to announce this strategic acquisition,” Kellogg Company President and CEO John Bryant was quoted in the report, welcoming the employees of Pringles that is being estimated to be 1,700 people.

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.” Bryant added.

“This is an excellent development for P&G, Pringles and Kellogg, creating value for our shareholders and representing an outstanding opportunity for Pringles employees with a leading company in the Food sector.” P&G Chairman, President and CEO Bob McDonald was quoted as saying.

Kellogg shares similar values and principles to us and we are confident that the Pringles business will thrive under Kellogg’s leadership.” McDonald added.

Apparently, a deal between food maker Diamond Foods Inc and P&G to buy Pringles for about $2.4 billion including debt was announced last April but did not pursue due to alleged delays caused by a US probe into Diamond‘s accounting practices.

Meanwhile, Pringles is being dubbed as world’s second largest player in savory snacks; with its annual sales across more than 140 countries worldwide notably reaching $1.5 billion.

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