How do you make one of the biggest snack companies around even bigger? You buy Pringles.
Diamond Foods, Inc has cleared summer regulatory hurdles and is destined to close an agreement later this year with The Proctor & Gamble Company to absorb the Pringles brand into Diamond Foods. The merger is valued to be at $2.35 billion.
“Our plan is to build upon the brand equity Pringles has established in over 140 countries. This strategic combination will create an independent, global leader in the snack industry with a focus on quality and innovative products,” said Michael J. Mendes, Chairman, President, and CEO of Diamond Foods.
“Not only is this combination immediately accretive, it also creates a platform that we believe will allow us to build shareholder value for years to come,” Mendes stated.
The acquisition of Pringles is said to triple the snack business of Diamond Foods as well as raise Diamond’s international value.
Bob McDonald, Chairman of the Board, President and Chief Executive Officer of Proctor & Gamble states, “We are confident Diamond Foods will be an excellent new home for our Snacks employees.”