CINCINNATI — Procter & Gamble Co. has finalized the sale of its Pringles snack business to Kellogg Co. for nearly $2.7 billion.
P&G said Thursday that with the cash transaction, effective June 1, it expects an after-tax gain of $1.4 billion to $1.5 billion, or 47 cents to 50 cents per share.
With completion of the deal, the Pringles workforce — including the manufacturing resources in Jackson, Tenn., and Mechelen, Belgium, will transfer to Kellogg, according to P&G.
"This sale creates significant value for P&G shareholders and an outstanding opportunity for Pringles employees with a leading company in the food sector," P&G chairman and chief executive officer Robert McDonald said in a statement. "Kellogg shares similar values and principles to us, and we are confident that the Pringles business will thrive under Kellogg’s leadership."
When the deal was announced in February, Kellogg said Pringles was 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 has said it aims to build a global snacks business on par with its global cereal business.
