Kellogg's to buy P&G's Pringles business

BATTLE CREEK, Mich. — Kellogg's is fortifying its snacks business by purchasing Procter & Gamble's Pringles business for nearly $2.7 billion.

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

The announcement follows last year's agreement between P&G and Diamond Foods through which Diamond Foods would acquire Pringles for $2.35 billion. The deal was delayed "to allow Diamond Foods to complete an accounting investigation."

"We are excited to announce this strategic acquisition," Kellogg's president and CEO John Bryant said. "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 has resulted in Pringles' well-deserved acclaim as one of the most recognized brands in the world.

Pringles is an exciting brand in a large and growing category," Bryant said. "The addition of Pringles to our global cereal and snacks portfolio will provide an excellent return for stakeholders and better position us for future, profitable growth."