FDBusiness.com

Kellogg Company to Acquire Pringles For $2.7 Billion

 Breaking News
  • European Commission Clears Nestlé’s Acquisition of NESTEA The European Commission has approved, under the EU Merger Regulation, the acquisition of sole control over the NESTEA business, in the European Economic Area except Spain, Portugal and Andorra, by Nestlé. NESTEA branded ready-to-drink tea business is currently operated by Beverage Partners Worldwide, a full-function joint venture between Nestlé and The Coca-Cola Company. The Commission concluded [...]...
  • Avian influenza – New Scientific Advice Boosts EU Preparedness Migratory wild birds crossing the north-eastern and eastern border of the European Union is the most likely pathway for avian influenza to enter the territory, says EFSA (European Food Safety Authority). Experts assessed the risk of avian influenza entering the EU and reviewed surveillance approaches – which comprise monitoring by Member States and the actions [...]...
  • Tough September Trading Hits British Restaurant, Pub and Bar Groups Britain’s managed pubs, bars and restaurants saw like-for-like sales decline 0.9% in September as the public appeared to pull back on spending on eating and drinking out, latest figures from the Coffer Peach Business Tracker reveal. Restaurants in London were worst hit, suffering a 3.2% fall in collective like-for-like sales compared to September last year. [...]...
  • High Shear Mixing Experts For processors that work with proteins, starches, gums, vitamins, and flavourings, the Rotosolver high shear mixer is a must-have. This workhorse makes light work of all types of ingredients and with thousands of installations around the world in food, beverage, dairy, condiments, and meat and poultry manufacturing facilities, Admix continues to set the global standard [...]...
  • Belvoir’s Bubbling With Joy This Christmas Belvoir Fruit Farms is getting into festive mood with a limited-edition Christmas label for their popular Elderflower Pressé. The jolly, holly covered label also features the brand’s iconic elderflower motif dressed to impress for Christmas in golden foil, bringing seasonal sparkle to the design, along with the cheerful seasonal message ‘Bubbling with Joy’. Belvoir’s Elderflower Pressé [...]...

Kellogg Company to Acquire Pringles For $2.7 Billion

Kellogg Company to Acquire Pringles For $2.7 Billion
February 15
12:50 2012

Kellogg Company has agreed to acquire Procter & Gamble’s Pringles business for $2.695 billion. Pringles is an excellent strategic fit for Kellogg and significantly advances the company’s goal of building a global snacks business on par with its global cereal business.

Pringles is the world’s second largest player in savoury snacks, with $1.5 billion in sales across more than 140 countries and manufacturing operations in the US, Europe and Asia. The stacked potato crisp has been a mainstay in supermarket snack aisles for more than four decades and is immediately identified by snack lovers worldwide by its unique saddle shape and distinct canister packaging.

Kellogg has established a strong US-based snacks business since its successful acquisition of Keebler more than a decade ago. With the acquisition of Pringles, the company will build a truly global snacks platform and organisation for further growth.

Pringles’ brand strength and consumer appeal fit well with Kellogg Company’s core strengths in brand-building and innovation, adding a complementary product to its high-quality snacks brands, most notably Keebler, Cheez-It and Special K Cracker Chips. In the US, the acquisition provides a new source of growth for the company’s already strong presence in the snacks category.

Internationally, Pringles provides a strong brand and an established platform from which Kellogg can more aggressively leverage its brands in the international snacks category. Kellogg will benefit from the collective expertise of more than 1,700 Pringles employees.

Kellogg and P&G expect to complete the transaction in the summer of 2012, pending necessary regulatory approvals.

“Pringles has an extensive global footprint that catapults Kellogg to the number two position in the worldwide savory snacks category, helping us achieve our objective of becoming a truly global cereal and snacks company,” says John Bryant, president and chief executive of Kellogg Company.

US-based snack foods group Diamond Foods had agreed to acquire Pringles from Procter & Gamble in April 2011. However, the $2.35 billion deal, which was expected to close in December 2011, was deferred following the decision to investigate an accounting irregularity at Diamond Foods. This investigation recently resulted in Diamond Foods announcing that its financial statements for 2010 and 2011 could not be relied on and would need to be restated. It also placed its president and chief executive, Michael Mendes, and chief financial officer, Steven Neil, on administrative leave and commenced a search for their permanent replacements.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 19, 2017PMA Fresh Summit 2017
  • October 21, 2017Food & Nutrition Conference & Expo 2017
  • October 22, 2017Serbotel
  • October 22, 2017Natexpo
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements