Everyone knows and loves Pringles and their popular slogan, “Once you pop you just can’t stop!” Luckily for Pringles, Kellogg’s loves them too.
Kellogg’s just purchased Pringles from their current parent company, Procter & Gamble for $2.7 billion, according to USAToday.com. Diamond Foods proposed a similar bid to Pringles which fell through aftter accounting problems and issues with an executive at Diamond.
Kellogg happily bought Pringles since they will be helping them in the competitive snack area. Currently Kellogg also owns Cheez-It, Pop-Tarts and Apple Jacks and wants to be just as well-known for their snacks as they are as their cereal.
“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,” Kellogg President and CEO John Bryant announced to the public in a statement.
USAToday.com stated, “Kellogg’s stock added $1.70, or 3.4%, to $52 in premarket trading. Diamond’s shares gained 88 cents, or 3.9%, to $23.18, while Procter & Gamble’s stock climbed 8 cents to $64.56.”
According to Kellogg, the new deal may initially increase its debt by about $2 billion. As a result they have devised a plan which will ultimately reduce their debt. For the next couple of years they will limit stock buybacks.
Diamond Foods was the first to proposed a buyout of Pringles. They were offering to give Pringles $1.5 billion when they first announced their plans in April. If Diamond had been able to buy Pringles it would have turned the company into a snack food giant, only being second to the largest snack maker in the United States, PepsiCo.
Do you think Pringles will still be just as tasty now that they’re owned by Kellogg?