Kellogg to buy Pringles brand from P&G for $2.69bn

Kellogg Company, a producer of cereals and convenience foods in North America, has entered into an agreement to buy Pringles, a brand of potato- and wheat-based snacks, from Procter & Gamble (P&G ) for $2.695bn.

The acquisition is a part of Kellogg's strategy to build a snacks business on par with its global cereal business. According to Kellogg's, the Pringles' brand will complement its snacks brands, including Keebler, Cheez-It and Special K Cracker Chips.

The acquisition includes two world-class manufacturing facilities, one in Tennessee and one in Belgium.

Kellogg Company's president John Bryant said the company is excited to announce this strategic acquisition

"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," Bryant added.

Pringles is the world's leading brand in savory snacks segment, with $1.5bn in sales across more than 140 countries and manufacturing operations in the US, Europe and Asia.

The transaction is expected to be completed in the summer of 2012, pending necessary regulatory approvals.

Last April, Diamond Foods announced its plan to buy Pringles for $2.35bn. However, the deal failed after Diamond began facing criticism over questionable payouts to its walnut farmers and said that it needed to restate its financials for 2010 and 2011.