News
Kellogg to buy Pringles Group
15 February 2012
Kellogg is to acquire Procter & Gamble’s (P&G) Pringles Group for $2.7bn.
The cereal brand will take on a $2bn debt through the deal, adding to its existing $5bn long-term debt.
It hopes to achieve $10m cost savings this year.
“Pringles has an extensive global footprint that catapults Kellogg to the number two position in the worldwide savoury snacks category, helping us achieve our objective of becoming a truly global cereal and snacks company,” says Kellogg’s chief executive John Bryant.
Pringles currently reports $1.5bn in annual sales.
Last week, a deal for Diamond Foods to buy the P&G snack company fell throughfollowing an internal inquiry into Diamond Foods’ accounting practices.
The agreement between Kellogg and Pringles is set to conclude by the end of the second quarter of 2012.
David Hing, London