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BATTLE CREEK, Mich., and CINCINNATI — Kellogg Co. plans to acquire the Pringles snack business from Procter & Gamble Co. for nearly $2.7 billion.
The companies said Wednesday that the all-cash transaction is expected to be finalized this summer, pending regulatory approvals.
P&G noted that its April 2011 deal to sell the Pringles business to Diamond Foods has been mutually terminated, as provided under the terms of their agreements.
Kellogg called the purchase an excellent strategic fit that furthers its goal of building a global snacks business on a level with its global cereal business. The packaged food giant acquired Keebler over a decade ago, and its roster of snack brands also now includes Cheez-It and Special K Cracker Chips. And globally, Pringles provides a springboard for Kellogg to more aggressively leverage its brands in the international snacks category, the company said.
"We are excited to announce this strategic acquisition," stated John Bryant, Kellogg’s president and chief executive officer. "Pringles has an extensive global footprint that catapults Kellogg to the No. 2 position in the worldwide savory snacks category, helping us achieve our objective of becoming a truly global cereal and snacks company. We are delighted to welcome the employees of the Pringles organization to Kellogg. Their collective passion and commitment has resulted in Pringles’ well-deserved acclaim as one of the most recognized brands in the world."
According to Kellogg, Pringles is the world’s second-largest player in savory snacks, with $1.5 billion in sales across over 140 countries and manufacturing operations in the United States, Europe and Asia. The company added that Pringles also enhances its current production capabilities with the addition of two world-class manufacturing facilities, one in Tennessee and one in Belgium.
"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," commented P&G chairman and CEO Robert McDonald. "Kellogg shares similar values and principles to us, and we are confident that the Pringles business will thrive under Kellogg’s leadership."
