BATTLE CREEK (WWJ/AP) - Michigan-based Kellogg Company announced Wednesday that it has entered into an agreement to acquire Procter & Gamble’s Pringles business for $2.695 billion.
The announcement came after Diamond Foods, which makes Emerald Nuts and Pop Secret popcorn, and Procter & Gamble mutually agreed to end their proposed $1.5 million deal. No breakup or other fees will be paid related to the deal’s termination.
Kellogg said it expects to complete the Pringles acquisition during the summer.
In a release, Kellogg said Pringles’ brand strength and consumer appeal fit well with its core strengths in brand-building and innovation, adding a complementary product to its high-quality snacks brands.
In the U.S., 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 said it plans to retain the 1,700 workers employed by Pringles.
Pringles is one of the world’s largest players in snacks, with $1.5 billion in sales across more than 140 countries and manufacturing operations in the U.S., Europe and Asia, according to Euromonitor data.