P&G’s Pringles sold to Kellogg for $2.7bn
01 June 2012
P&G has completed its $2.7bn sale of its Pringles snack brand to Kellogg.
Following the deal, the Pringles workforce and manufacturing resources in Tennessee and Belgium will transfer to Kellogg. Pringles currently reports $1.5bn in annual sales.
The sale was announced back in February
after a deal to sell the snack brand to Diamond Foods fell through
following an internal inquiry into Diamond Foods’ accounting practices.
“This sale creates significant value for P&G shareholders and an outstanding opportunity for Pringles employees with a leading company in the Food sector,” says P&G chairman, president and chief executive Bob McDonald. “Kellogg shares similar values and principles to us and we are confident that the Pringles business will thrive under Kellogg’s leadership.”
Through the deal, Kellogg will take on approximately $2bn of debt, adding to its $5bn existing long term debt.
David Hing, London