P&G announced its intention to sell the Pringles
business to Kellogg in a $2.7-billion all-cash transaction that we expect to
complete in summer of 2012. Final timing will be dependent upon receiving all necessary
regulatory approvals. Due to the recent announcement by Diamond Foods, P&G
has mutually agreed with them to terminate the existing transaction.
This is an excellent development for P&G,
Pringles and Kellogg, creating value for shareholders and representing an
outstanding opportunity for Pringles employees with a leading company in the
Food sector. Kellogg is a strong strategic home for Pringles and will
significantly accelerate Kellogg’s goal of building a global snacks business on
par with its global cereal business.
“Guided by what is best for shareholders and employees, we believe this
agreement with Kellogg presents an exciting new future for our snacks
business,” said P&G Chairman
of the Board, President and CEO Bob McDonald.