“Pringles is an iconic billion dollar snack brand with significant global manufacturing and supply chain infrastructure,” said Michael J Mendes, chairman, president and CEO of Diamond Foods. “Our plan is to build upon the brand equity Pringles has established in over 140 countries. This strategic combination will create an independent, global leader in the snack industry with a focus on quality and innovative products. Not only is this combination immediately accretive, it also creates a platform that we believe will allow us to build shareholder value for years to come.”
“We’re confident Diamond Foods will be an excellent new home for our snacks employees,” said Bob McDonald, chairman of the board, president and CEO of P&G. “This is also a terrific deal for our shareholders, maximising value and minimising earnings per share dilution.”
The value of the transaction is $2.35bn, comprising $1.5bn in Diamond common stock, consisting of 29.1m shares for approximately 57% of the outstanding shares of the combined company, and the assumption of $850m of Pringles debt. Diamond’s existing shareholders would continue to own approximately 43% of the combined company.
The transaction is subject to approval by Diamond shareholders and the satisfaction of customary closing conditions and regulatory approvals, and is expected to be completed by the end of calendar 2011.
Source: The Procter & Gamble Company
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