Business

Kellogg to buy snack maker Pringles for $2.7bn

Pringles
Image caption Pringles generate annual sales of about $1.5bn

Kellogg has agreed to buy Pringles from Procter & Gamble for $2.7bn.

Procter & Gamble was planning to sell the business to Diamond Foods, but that deal collapsed after delays caused by problems with Diamond's accounts.

Kellogg, best know for its breakfast cereals, says this deal will make it the second biggest player in the global snacks business.

Pringles are sold in more than 140 countries and generate annual sales of about $1.5bn.

"The Pringles business enhances Kellogg Company's existing production capabilities with the addition of two world-class manufacturing facilities, one in Tennessee and one in Belgium." Kellogg said in a statement.

Last year, Procter & Gamble agreed to sell the business to Diamond Foods.

But the deal was held up after Diamond ran into problems with its accounts.

Authorities have been investigating why Diamond booked payments to walnut growers in the wrong years.

Last week, Diamond's chief executive was replaced and the company restated its results for the past two years.

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