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P&G to sell its Pringles business to the Kellogg Company

 The Kellogg Company
February 15, 2012
The Procter &Gamble Company (NYSE:PG) today announced an agreement to divest its Snacks business to The Kellogg Company in a $2.7 billion all-cash transaction. The companies expect to complete the deal in summer of 2012. Final timing will be dependent upon receiving all necessary regulatory approvals.

The prior agreement to sell the Pringles business to Diamond Foods has been mutually terminated by P&G and Diamond as provided under the terms of their agreements.

The sale of the Pringles business to The Kellogg Company creates significant value for P&G shareholders. P&G expects an after-tax gain on the transaction in the range of $1.4 billion to $1.5 billion, or approximately $0.47 to $0.50 per share, approximately the same as was estimated at the time of the initiation of the original transaction with Diamond Foods in April, 2011. The Pringles business is an excellent strategic fit for Kellogg, and it will significantly advance their goal of building a global snacks business on par with its global cereal business.

P&G’s 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 Kellogg’s leadership.”
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.
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.
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