Pringles Goes to Kellogg’s

Diamond Foods, which makes Emerald Nuts and Pop Secret popcorn, and Procter & Gamble said Wednesday that they mutually agreed to end their proposed deal. As a result, there will be no breakup fees.

The news comes a week after Diamond Foods said it was replacing its CEO and CFO following an internal investigation which found that the company improperly accounted for payments to walnut growers and it needs to restate two years of financial results.


In a press conference in Cincinnati, P&G CEO Bob McDonald called it the “best outcome” and creates value for P&G shareholders. McDonald noted that with the acquisition, expected to close this summer, Pringles will become Kellogg’s No. 2 brand (behind Special K).


Although he would not offer specifics on how P&G will spend the money from transaction, McDonald noted that P&G shareholders’ return is 6% including dividends and stock buybacks, and he said that P&G wants to be in the top third of its peer group when it comes to shareholder return.


Pringles currently employs 1,700.