In a move that will triple the size of Diamond Food’s snack business, the company has announced plans to buy Pringles from Procter & Gamble Co., as part of a deal valued at $2.35 billion.
The change will increase Diamond’s scale in the U.S. grocery, mass merchandise, drug and convenience channels, leading to greater merchandising and distribution influence. It also will more than double the company’s snack sales in the United States and UK, which are Pringles’ two largest markets, according to a release from the company.
In addition, it will give Diamond a border manufacturing and supply chain platform, with access into key growth markets, including Asia, Latin America and Central Europe.
“Our plan is to build upon the brand equity Pringles has established in over 140 countries,” explains Michael J. Mendes, chairman, president and ceo of Diamond Foods.
Bob McDonald, chairman of the board, president and ceo of P&G, says the employees who currently work on the line will go to Diamond Foods.
“This is also a terrific deal for our shareholders - maximizing value and minimizing earning per share dilution,” he adds.
Pringles is the world largest potato crisp brand, with manufacturing operations in the U.S., Europe and Asia. For more information, visit http://www.diamondfoods.com/.