KELLOGG'S BUY FOR 2 MIL 700 PRINGLES MDD

(Universal.com.mx) The U.S. food company Kellogg's announced today that it reached an agreement with Procter and Gamble (P & G) to acquire by 2 000 700 million potato chip brand Pringles, in an operation that occurs after to frustrate the sale to Diamond Foods. The operation will mean that Kellogg's, which is based in Battle Creek (Michigan), progress in its overall business objectives both in the field of appetizers like the cereal, which is already one of the leaders, according to his statement release. The signing of Michigan began the expansion in this sector by acquiring more than a decade of Keebler, now reinforced with this new purchase, including other brands of snack like Cheez-It Cracker Special K and chips. "In the U.S., this acquisition represents a new source of growth for the company to strengthen its presence in that category," said Kellogg's, which said that internationally "Pringles is a strong brand and is a platform" for further growth in the sector. Its chief executive, John Bryant, said in its statement that the agreement is also possible to expand the business in the countries of Latin America. Pringles is the second largest manufacturer of such products, with sales exceeding $ 500 million billion in 140 countries and manufacturing facilities in Tennessee and in Belgium and more than 1,700 employees. Both companies expect the transaction to be completed in the first half of the year, after receiving approval from U.S. regulators. Procter and Gamble, based in Cincinnati (Ohio), had a previous agreement to sell the brand to Diamond Foods signed by 1,500 million dollars, but the operation was terminated by mutual agreement due to financial problems of the second. In April 2011, P & G announced an agreement to sell that brand of Diamond Foods, which also assumed debt of $ 850 million. The agreement with Diamond failed last week after the company based in San Francisco (California) fired its president and CEO after an internal audit discovered that there were flaws in the accounting entries in the last two years related payments to producers of nuts. With this sale Procter, one of the thirty components of the Dow Jones industrials and follows their last food related business to focus on the manufacture of products for home care and personal hygiene. In the New York Stock Exchange shortly after the release of the agreement, shares of P & G gained 0.43% to $ 64.73 each, while so far this year have lost 2.88% and have advanced 1.36% in the last twelve months. The Kellogg's, meanwhile, advanced 4.75% to $ 52.60 each, while so far this year have gained 4.19% and 0.58% lost in the last twelve months.