Procter & Gamble is selling its Pringles brand to Diamond Foods Inc. for $1.5 Billion. This deal will triple Diamond Foods' revenue to $2.4 billion a year. With Pringles, Diamond will be one of the top in the snack business next to PepsiCo's Frito-Lay. The deal is on the works and just needs the Diamond stockholder approval. This huge deal is expected to close by end of this year.
P&G is known for Tide and Pampers, is apparently going to focus more on health and beauty. They have been selling their major food brands in recent years and Pringles is the last of P&G's major food brands. They have recently sold their other brands like Folgers coffee, Jif peanut butter, Crisco Shortening and Sunny Delight drinks. This leaves P&G with 23 brands with $1 billion or more in annual revenue.
Diamond, founded in 1912 by a group of California walnut growers and is well known for its Emerald nuts. It recently became public in 2005 and started to acquire snack brands. It recently acquired Pop Secret in 2008 and Kettle potato chips just last year.