P&G sells Pringles for $2.35bn to Diamond Foods

P&G sells Pringles for $2.35bn to Diamond Foods
P&G sells Pringles for $2.35bn to Diamond Foods

Procter & Gamble, the global FMCG company, has sold its last remaining food brand Pringles to Diamond Foods for $2.35bn.

Pringles lays claim to be the world’s largest potato crisp brand with sales in more than 140 countries.

The buyout effectively triples the size of Diamond Foods, which also owns the Kettle Chips brand, alongside Diamond of California and Emerald, the nuts brands, and Pop Secret, the microwave popcorn brand. The snack company forecasts total revenues of approximately $2.4bn for the newly consolidated structure.

Bob McDonald, chief executive of P&G, said: "We are confident Diamond Foods will be an excellent new home for our Snacks employees.

"This is also a terrific deal for our shareholders, maximizing value and minimizing earnings per share dilution."

According to Mintel, Pringles was the second largest crisp and snack brand in the UK in 2010, with a 7% increase in sales to £167m

Michael J. Mendes, chief executive of Diamond Foods, said: "Pringles is an iconic, billion dollar snack brand with significant global manufacturing and supply chain infrastructure.

"Our plan is to build upon the brand equity Pringles has established in over 140 countries. This strategic combination will create an independent, global leader in the snack industry with a focus on quality and innovative products. Not only is this combination immediately accretive, it also creates a platform that we believe will allow us to build shareholder value for years to come."

P&G will control the Pringle brand until it is fully signed over to Diamond Foods, which is expected to be completed at the end of the calendar year.

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message
Lynx unleashes £9m 'Peace invasion' campaign
Social Brands 100 Youth: Pizza Hut most social youth brand in UK
Cheryl Cole is wild and arresting in new L'Oreal work
Morrisons told not to show alcohol ads during YouTube nursery rhymes
O2 head of brand Shadi Halliwell departs after 23 years at company in restructure
Tesco hit by further sales decline as it turns to digital Clubcard and social network
Branding guru Wally Olins dies aged 83
Duracell short film captures epic Transatlantic voyage
Ash runs Tinder experiment to show smokers are less desirable to opposite sex
British Airways teams up with Gerry Cottle Jnr for summer of rooftop film screenings
Arklu says 'girls can be superheroes too' with doll design competition
Coke enters squash market with Oasis Mighty Drops
Virgin Galactic signs up Land Rover as space flight sponsor
Motorola marketer Andrew Morley departs as Google gears up for sale to Lenovo
US Airways apologises after tweeting obscene image at a customer
Mumsnet admits users' emails and passwords accessed via Heartbleed bug