Snack Wars rumble on

Pringles, the snack foods division of Proctor & Gamble (P&G), will now be sold to Kellog's after P&G withdrew from negotiations with Diamond Foods that had been ongoing since spring of 2011.

Pringles, which makes snacks marketed by footballers and for people that "can't stop popping", was subject to a USD 2.3bn offer by Diamond Foods that has been delayed and subject to speculation since Diamond were forced to launch an internal investigation in accounting discrepancies.

The Kellogg's deal is an all-cash deal valuing the Pringles division at USD 2.7bn, and will help Kellogg's move into a much stronger position in the USD 140bn per year global retail market for snacks.

The announcement of this deal comes the day after Kellogg's, along with other cereal manufacturers, faced criticism for the amount of sugar contained in their breakfast cereals.

With the acquisition of the Pringles brand, Kellogg’s have extended their snack product range to appeal to both sweet and savoury snackers!

Filed under: food, US, dealmaking