Financial scandal at Diamond Foods
Last April, P&G and nut producer Diamond Foods agreed for Pringles
snacks to change hands, with P&G receiving 2.4 billion dollar (1.7
billion euro) in Diamond-shares and becoming the company’s majority
shareholder.
This deal however was cancelled as it became apparent Diamond Foods had
deliberately included large payments in other fiscal periods to
influence financial figures. As a result, specialists had to review two
complete fiscal years in order to ‘clean’ the results and Diamond Food’s
share price fell sharply – effectively causing a considerable decrease
in the acquisition price.
Kellogg to the rescue
Enter Kellogg, which has now stepped up to buy Pringles in order to
reach “the number two position in the worldwide savory snacks category”,
said Kellogg’s CEO John Bryant, who hoped the new acquisition would
help Kellogg to “achieve our objective of becoming a truly global cereal
and snacks company.”
Kellogg is said to pay 2.7 billion dollar (2 billion euro) for the
Pringles brand and its two production units (Mechelen, Belgium and
Jackson, Tennessee), almost twice the 1.15 billion euro in yearly
turnover Pringles realises worldwide in 140 countries. The sale should
be completed this summer, if the competition authorities agree to it.
