SF-Based Diamond Foods Buys Pringles Chips For $1.5B
SAN FRANCISCO (AP) -- Diamond Foods Inc. is buying Procter & Gamble Co.'s Pringles chips business in a deal valued at $1.5 billion.
San Francisco-based Diamond, whose products include Emerald nuts and Kettle Brand potato chips, said Tuesday that the transaction will more than triple the size of its snack business.
The deal includes $1.5 billion in Diamond stock and the assumption of $850 million of debt. The combined business will be led by Diamond CEO Michael Mendes. Diamond shareholders will ownabout 43 percent of the combined company.
The deal will give Procter & Gamble a one-time earnings boost of about $1.5 billion, or 50 cents per share.
In recent years, P&G sold Folgers coffee, Jif peanut butter, Crisco shortening and Sunny Delight drinks, leaving Pringles as the last major food brand for the Cincinnati company.
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