FDBusiness.com

Diamond Foods Bags Pringles in $2.4 Billion Deal

 Breaking News
  • Carlsberg Group Upgrades Full Year Operating Profit Outlook Carlsberg Group has delivered organic operating profit growth of 17.7% for the first half of 2019 with reported growth of 18.2% to DKr 5.17 billion (€693 million). Organic net revenue growth was 4.2% and on a reported basis net revenue rose by 6.5% to DKr32.99 (€4.42 billion). Operating margin improved by 160bp to 15.7%. Reported net [...]...
  • Diageo Forms New Rum Joint Venture Diageo and Corporación Cuba Ron, a leader in the production of premium Cuban rums, have created a joint venture – Ron Santiago. The joint venture will have exclusive global distribution rights to Santiago de Cuba, a premium Cuban heritage rum brand. Globally, premium and above rum segments are growing ahead of the category overall, with premiumisation [...]...
  • Stirring Times For US Yogurt – Innovation is Vital in a Changing Consumer Environment Over half of all U.S. consumers now buy yogurt as part of their typical grocery basket, according to a new report from Innova Market Insights, but their habits appear to be evolving. Convenience themes are becoming increasingly important, for example, with 17% of consumers naming this as a significant choice factor in 2018, which is [...]...
  • FrieslandCampina Significantly Expands its VLOG Production Due to the sharp increase in demand in Germany, FrieslandCampina is increasing the number of participating dairy farms that supply VLOG milk from 400 to more than 600. All VLOG milk produced by Dutch FrieslandCampina dairy farmers is used to make cheese for the German market. VLOG (Verband Lebensmittel Ohne Gentechnik) is a German association responsible [...]...
  • English Food Manufacturers Sign Up to Made Smarter Support A number of food manufacturing firms in the North West of England have signed up to a business-led programme which aims to use digital technology to boost growth and success. By implementing advances in data analytics, Artificial Intelligence (AI), Augmented Reality (AR), Industrial Internet of Things (IIoT), 3D-printing and robotics, firms can enhance their profitability [...]...

Diamond Foods Bags Pringles in $2.4 Billion Deal

Diamond Foods Bags Pringles in $2.4 Billion Deal
April 06
13:38 2011

US-based snacks group Diamond Foods is acquiring the Pringles business from Procter & Gamble in a deal worth $2.35b. Pringles is the world’s largest potato crisp brand with sales in over 140 countries and manufacturing operations in the US, Europe and Asia. The brand has been built over 45 years with a combination of proprietary products, unique package design and significant advertising investment.

Pringles will join Diamond Foods’ portfolio of brands, which includes Diamond of California and Emerald nuts, Pop Secret microwave popcorn and Kettle potato chips, creating a premium snack focused company with total revenues of approximately $2.4b. Diamond acquired the Kettle Foods businesses in both the US and the UK from private equity group Lion Capital for $615m in cash last year.

The addition of Pringles will more than triple the size of Diamond’s snack business and leverage its sales and distribution infrastructure through a more than doubling of snack sales in the US and UK, which are Pringles’ two largest markets.

The deal will also allow Diamond to gain a broader global manufacturing and supply chain platform, with access into key growth markets around the world, including Asia, Latin America and Central Europe. International sales will account for approximately 49% of the enlarged Diamond’s revenues on a pro forma basis.

Diamond has a history of building, acquiring and developing brands through product and package innovation, efficient distribution and brand investment. The company’s total revenues have doubled and earnings per share have grown more than four-fold in the past five years.

“Pringles is an iconic, billion dollar snack brand with significant global manufacturing and supply chain infrastructure,” says Michael Mendes, chairman, president and chief executive of Diamond Foods. “Our plan is to build upon the brand equity Pringles has established in over 140 countries. This strategic combination will create an independent, global leader in the snack industry with a focus on quality and innovative products. Not only is this combination immediately accretive, it also creates a platform that we believe will allow us to build shareholder value for years to come.”

Under the terms of a split-merge transaction, P&G shareholders can elect to exchange P&G shares for shares of Diamond. The value of the deal is $2.35b, comprising $1.5b in Diamond common stock for approximately 57% of the combined company, and the assumption of $850m of Pringles debt. Diamond’s existing shareholders would continue to own approximately 43% of the combined company.

Diamond expects to incur one-time costs of approximately $100m related to the transaction over the next two years. P&G also will provide Diamond transition services for up to 12 months after closing.

About Author

colin

colin

Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2019Packaging Innovations & Luxury Packaging London 2019
  • October 1, 2019PPMA Total Show
  • October 17, 2019Future Food-Tech
  • November 18, 2019Plastics Caps and Closures Conference 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements