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Kellogg to buy Pringles brand for $2.7 billion

The addition will help Kellogg with its goal of becoming as big globally in snacks as it is in cereal. The Pringles business will add to Kellogg's stable of snack brands that include Keebler, Cheez-It and Special K Cracker Chips.

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Pringles chips are displayed in a posed photo at a West Bath grocery store on in 2011.

Pat Wellenbach/AP

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Kellogg has popped up to buy the Pringles chip brand from Procter & Gamble for $2.7 billion after a similar deal with Diamond Foods was derailed by accounting problems and an executive shakeup at Diamond.

The addition will help Kellogg with its goal of becoming as big globally in snacks as it is in cereal. The Pringlesbusiness will add to Kellogg's stable of snack brands that include Keebler, Cheez-It and Special K Cracker Chips.

Troubled snack food company Diamond Foods and P&G on Wednesday said they called off their $1.5 billion deal for the brand.

"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," Kellogg President and CEO John Bryant said in a statement.

Kellogg's stock added $1.70, or 3.4 percent, to $52 in premarket trading. Diamond's shares gained 88 cents, or 3.9 percent, to $23.18, while Procter & Gamble Co.'s stock climbed 8 cents to $64.56.

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