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


Patrick Louvet is Ralph Lauren's new CEO

19/05/2017

Fashion label Ralph Lauren has appointed Patrick Louvet as its new CEO. He will succeed Stefan Larsson, who decided to leave the company following a difference of opinion with founder and chairman Ralph Lauren.

Scotch & Soda continues French conquest

18/05/2017

Dutch fashion brand Scotch & Soda will soon open boutiques in Dijon and Paris, to add to its nine boutiques in France.

Urban Outfitters once again failed to meet expectations

17/05/2017

Fashion company Urban Outfitters failed to live up to 2017’s first quarter expectations. Its like-for-like turnover dropped again for Anthropologie, Free People and Urban Outfitters’ parent company.

Stella McCartney strengthens its retail strategy

16/05/2017

Fashion label Stella McCartney introduced a new store formula in Paris, focused on sustainability. The brand wants to open new stores in Florence, Los Angeles and New York in the summer.

Abercrombie & Fitch considers sales options

11/05/2017

American clothing brand Abercrombie & Fitch has enlisted an investment bank to look at its options if it were to sell the fashion company, although this does not mean it will definitely be sold.

More than 20 million active Zalando customers

09/05/2017

At the end of its first trimester, Zalando surpassed the twenty million active customer milestone. Turnover for the quarter also grew nearly 25 %, to 980.2 million euro.

Back to top