FDBusiness.com

Kellogg Company to Acquire Pringles For $2.7 Billion

 Breaking News
  • Orkla Moves into New HQ Orkla, the Nordic region’s largest branded consumer goods company, has moved into new headquarters in Oslo, Norway. The move marks a new era in the company’s history, with Orkla’s businesses in Norway now assembled under one roof. More than 900 Orkla employees are based in the new office premises. “The building we are now moving into is [...]...
  • New Heads For Carlsberg Group’s European Businesses Lars Lehmann has been appointed as Executive Vice President (EVP) for Carlsberg Group’s Eastern European region and as a member of the global brewer’s Executive Committee (ExCom). He will replace Jacek Pastuszka, who will change from EVP Eastern Europe to Western Europe, while current Western Europe EVP Chris Warmoth reverts to Group Strategy as EVP. Effective [...]...
  • Rising Prices Drive Irish Grocery Sales Growth The latest figures from Kantar Worldpanel show the Irish grocery market grew by 3.5% in the 12 weeks to 24 February 2019, putting the sector on a solid footing as the UK finalises preparations to leave the EU. After a prolonged period of deflation, an upward trajectory in grocery prices is making a significant contribution [...]...
  • New EU Rules to Ensure Fairness in the Food Supply Chain The European Parliament has approved a new set of EU rules that will blacklist practices, such as late payments for delivered products, late unilateral cancellations or retroactive order changes, refusal by the buyer to sign a written contract with a supplier and the misuse of confidential information. Threats of retaliation against suppliers, for instance delisting [...]...
  • Mondelēz International Invests in Prebiotic Functional Snacks Mondelēz International has taken a minority investment in Uplift Food, a US-based early-stage start-up focusing on prebiotic functional foods. This is the first venture investment the company is making as part of SnackFutures, the company’s innovation and venture hub aimed at unlocking snacking growth opportunities around the world. A key pillar of the company’s consumer-centric growth [...]...

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

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements