Kellogg to buy P&G's Pringle chips business for $2.7 bn

New York: Kellogg Company will acquire Pringles potato chips business from Procter & Gamble for $2.7 billion.

Both Kellogg and Procter & Gamble (P&G) have significant presence in India.

Kellogg has entered into an agreement with P&G to acquire the latter’s Pringles business for $2.69 billion in cash.

In a statement, Kellogg said that Pringles is an excellent strategic fit.

“It significantly advances the company’s goal of building a global snacks business on par with its global cereal business,” the firm noted.

Pringles is the world’s second largest player in savory snacks, with $1.5 billion in sales across more than 140 countries and manufacturing operations in the US, Europe and Asia, according to the statement.

“The stacked potato crisp has been a mainstay in supermarket snack aisles for more than four decades and is immediately identified by snack lovers worldwide by its unique saddle shape and distinct canister packaging,” it added.

Kellogg 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.

“This is an excellent development for P&G, Pringles and Kellogg, creating value for our shareholders and representing an outstanding opportunity for Pringles employees…,” P&G’s chairman, president and chief executive officer Bob McDonald said.

PTI