Kellogg’s would be acquiring snack brand Pringles from Proctor & Gamble Co – for $2.7 billion. Following this deal Kellogg’s would be amongst the leading players in the global snack market, second only to PepsiCo.
P & G has been dominant in categories such as household and personal care and for the company this transaction will mean an exit out of the food, snacks business. Previously Proctor & Gamble Co, had been in talks with Diamond Foods Inc., for the deal, however the deal could not materialize.
The $2.7 billion deal announced Wednesday is subject to federal approval and may take place around June 2012. The transition will lead to the movement of about 1,700 Pringles employees to Kellogg’s.