Who Won in the Pringles Deal?http://www.fool.com/investing/dividends-income/2011/04/06/who-won-in-the-pringles-deal.aspx Matt Koppenheffer
April 6, 2011
Consumer goods giant Procter & Gamble (NYSE: PG ) , advised by investment bank Morgan Stanley, was on one side. Up-and-coming snack slinger Diamond Foods (Nasdaq: DMND ) , with Bank of America's Merrill Lynch in its corner, was on the other.
Up for grabs: Pringles and $2.35 billion.
So who ended up the winner in this salty snack deal? And, maybe more importantly, with the deal structure a relatively unusual one that will give P&G shareholders the option to swap their shares for Diamond shares, is it worthwhile for P&G investors to jump ship?
Let's dig in.
For sake of comparison, here is what comparable-company multiples look like.
Source: Capital IQ, a Standard & Poor's company.
Apparently, the investment bankers were looking at a very similar set of comps. It would appear that the price was pretty fair for both sides, so it's tough to give an edge here.