Bloomberg reports that Diamond Foods will acquire the Pringles potato chip brand and operations from Procter & Gamble for $1.5 billion, plus $850 million in Pringles debt, bringing the total value of the deal to $2.35 billion.
The deal turns Diamond to more than double its snack business in the US and become the world’s second largest manufacturer of savory snacks, behind only PepsiCo’s Frito-Lay division. And, it gets P&G out of the food business.
The deal turns Diamond to more than double its snack business in the US and become the world’s second largest manufacturer of savory snacks, behind only PepsiCo’s Frito-Lay division. And, it gets P&G out of the food business.
- KC's View:
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The New York Times story notes that when Pringles was launched a half-century ago, it was pretty much a dud, and only became popular during the eighties, fueled by a reformulation and canny advertising.
One interesting note in the Times story is that the iconic Pringles can was invented by a chemist named Fredric Baur, who, when he died and was cremated in 2008, had his ashes placed in a Pringles can. At his request. The story says that his kids stopped by a Walgreens on the way to the funeral home to pick up the can.
There’s a metaphor and business lesson in there somewhere...
