Kellogg buys P&G's Pringles for $2.7 billion

Kellogg buys P&G's Pringles for $2.7 billion

American cereal producer Kellogg has bought Pringles snacks from Procter & Gamble for 2 billion euro, after the previous acquisition contract with Diamond Foods was terminated because of the latter's 'creative accounting'.

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. 

Questions or comments? Please feel free to contact the editors


C&A sells 13 French stores

22/11/2017

Fashion chain C&A will sell thirteen of its 160 French stores. The locations and the staff will all transfer to French fashion chain Chaussea and Stokomani.

Europe and Asia give Guess strong quarter

22/11/2017

American fashion brand Guess’ third quarter turnover grew more than 3 %, mainly thanks to excellent sales in Asia and Europe. It did post a net profit loss however.

Urban Outfitters gets back on track in third quarter

21/11/2017

Following several quarters of negative results, Urban Outfitters’ third quarter was one of growth. Total turnover grew 3.5 % and there was a 1 % like-for-like growth.

Danish fashion platform Miinto is now also available in Belgium

21/11/2017

Danish fashion platform Miinto has launched in Belgium this week. Smaller fashion retailers can sell their products on the platform, combining their strength to withstand larger web shops.

Lubach: “Fair clothing is a matter of priorities”

15/11/2017

Ever since the Rana Plaza disaster, the clothing industry has clamoured for transparency in the clothing manufacturing branch, but Zondag met Lubach’s Arjen Lubach proved on Sunday that there is no actual transparency yet.

Fashion chain Canada Goose opens first European store

14/11/2017

Canadian fashion chain Canada Goose opened its first European store in London. The brand’s clothing has been in Europe for quite some time, but only at multi-brand stores up until now.

Back to top