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Manufacturing News

TECH FLASH

Kellogg Company to acquire P&G’s Pringles business

feature
February 23, 2012

PringlesKellogg Company entered into an agreement to acquire Procter & Gamble’s Pringles business for $2.695 billion. According to Kellogg, Pringles is an excellent fit as it advances the company’s goal of building a global snacks business on par with its global cereal business.

Kellogg has established a strong US-based snacks business since its acquisition of Keebler more than a decade ago. With the acquisition of Pringles, the company expects to build a global snacks platform and organization for further growth.

According to the Kellogg Company, highlights of the acquisition include:

• Pringles’ brand strength and consumer appeal fit well with Kellogg Company’s core strengths in brand-building and innovation, adding a complementary product to its snacks brands, most notably Keebler, Cheez-It and Special K Cracker Chips.

• In the US, the acquisition provides a new source of growth for the company’s already strong presence in the snacks category.

• Internationally, Pringles provides a strong brand and an established platform from which Kellogg can more aggressively leverage its brands in the international snacks category.

• Kellogg will benefit from the collective expertise of more than 1,700 talented Pringles employees. The similar heritage, culture and values of Kellogg and P&G are expected to facilitate a smooth transition.

• The companies expect to complete the transaction in the summer of 2012, pending necessary regulatory approvals.

“We are excited to announce this strategic acquisition,” says John Bryant, Kellogg Company’s president and chief executive officer. “Pringles has an extensive global footprint that catapults Kellogg to the number two position in the worldwide savory snacks category, helping us achieve our objective of becoming a truly global cereal and snacks company. We are delighted to welcome the employees of the Pringles organization to Kellogg. Their collective passion and commitment have resulted in Pringles’ well-deserved acclaim as one of the most recognized brands in the world.”

P&G Chairman, President and Chief Executive Officer Bob McDonald adds, “This is an excellent development for P&G, Pringles and Kellogg, creating value for our shareholders and representing an outstanding opportunity for Pringles employees with a leading company in the food sector. Kellogg shares similar values and principles to us, and we are confident that the Pringles business will thrive under Kellogg’s leadership.”

(Image source: Procter & Gamble.)

KEYWORDS: consumer trends

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