(Associated Press) 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 Pringles business 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. Speculation had been growing over the past few days that Diamond’s proposed acquisition of Pringles was in trouble, particularly after the San Francisco company announced a week ago that it was replacing its CEO and CFO following an internal investigation that found that the Diamond improperly accounted for payments to walnut growers. The company now needs to restate two years of financial results. After those announcements, Diamond’s stock slid, which hurt its ability to finance the Pringles’ deal.
Kellogg expects to complete the Pringles acquisition during the summer, possibly on June 30.
