$2.4 Billion Pringles Acquisition Delayed
US-based snack foods group Diamond Foods is delaying its acquisition of Pringles from Procter & Gamble. The $2.35 billion deal was agreed in April 2011 and was expected to close in December 2011 but has now been deferred until the first half of 2012, following the decision to investigate an accounting irregularity at Diamond Foods.
Diamond and P&G have revised the expected closing date of the acquisition following the receipt by the chairman of the audit committee of Diamond’s board of directors of an external communication regarding Diamond’s accounting for certain crop payments to walnut growers. In response to the communication, Diamond’s audit committee is to perform an investigation of this matter.
Pringles is the world’s largest potato crisp brand with sales in over 140 countries and manufacturing operations in the US, Europe and Asia. The global, iconic brand has been built over 45 years with a combination of proprietary products, unique package design and significant advertising investment. The combination with Pringles will more than triple the size of Diamond’s snack business and create a premium snack-focused company with total revenues of approximately $2.4 billion.
