Kellogg Adds Pringles to Snack Line

CINCINNATIThe Kellogg Company swooped in to purchase the Pringles business from Procter & Gamble after a previous deal with Diamond Foods fell through.  The  $2.7 billion all-cash transaction is expected to be completed by the summer of 2012.

P&Gs Chairman, President and Chief Executive Officer, Bob McDonald, said: 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. Kellogg shares similar values and principles to us and we are confident that the Pringles business will thrive under Kelloggs leadership."

Just days before the announcement of Kellogg's acquisition, Diamond Foods and P&G mutually agreed to terminate Diamond's proposed acquisition. This move was not entirely surprising, as Diamond Foods had also just announced its CEO Michael Mendes and CFO Steven Neil were put on administrative leave after the company's board of directors determined improper accounting for approximately $80 million in payments made to walnut growers.