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BATTLE CREEK, Mich. -- Kellogg Co. entered into an agreement with Proctor & Gamble to purchase the Pringles business. The purchase price for Pringles, the second largest player in savory snacks, will be $2.695 billion in cash, Kellogg said.
"We are excited to announce this strategic acquisition," said John Bryant, president and CEO of Kellogg Co. "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."
Kellogg noted that Pringles' brand strength and consumer appeal will be a good fit with its core strengths in brand-building and innovation, and add a complementary product to its existing snack line. The acquisition also will provide a strong new source of domestic and international growth, according to Kellogg’s announcement.
This deal comes months after Diamond Foods inked an agreement with Procter & Gamble to purchase the Pringles brand. The anticipated closing date for that deal was delayed in November and had been expected to close during the first half of this year.
"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," added Bob McDonald, P&G's chairman, president and CEO. "Kellogg shares similar values and principles to us and we are confident that the Pringles business will thrive under Kellogg's leadership."
The transaction is expected to close this summer, pending the necessary regulatory approvals.