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The Lessons Learned From Diamond’s Pringles Fiasco

 The Kellogg Company
February 15, 2012
With Kellogg’s deal to acquire Procter &Gamble’s Pringles brand for $2.695 billion in cash, Diamond Foods is left with nothing. Proctor &Gamble’s announcement of the deal was accompanied by a terse statement that the consumer products company had terminated its prior agreement to sell Pringles to Diamond Foods.

It is a staggering reversal of fortune for Diamond and its now-suspended chief executive and chairman, Michael J. Mendes.

So it is time to see what we have learned from the twists and turns of this failed deal. Once again, some of these lessons seem rather basic, even cliché, but worth repeating. Frankly, deal makers tend to repeatedly ignore them.
Companies in this Article
Headquartered in Stockton, California, Diamond Foods is the premier processor and marketer of culinary, inshell snack and ingredient nuts, with distribution in over 80% of U.S. supermarkets. In March 2010, Diamond Foods Inc. acquired Kettle Foods.
Procter and Gamble (P&G) is a multinational manufacturer of product ranges including personal care, household cleaning, laundry detergents, prescription drugs and disposable nappies. For many years, Procter and Gamble was the manufacturer and marketer of the stackable potato chips brand Pringles. All Pringles activities were sold in to the Kellogg Company
The Kellogg Company is a manufacturer of ready-to-eat cereal and convenience food products. The Kellogg Company acquired the Pringles business from P&G in 2012.