It looks like Procter & Gamble
After Diamond Foods
Food maker Kellogg
Kellogg ultimately expects Pringles to add $0.08 to $0.10 to its earnings per share next year, not counting the one-time costs of the acquisition. Though the deal will be for cash, Kellogg will add $2 billion in debt to its existing $5 billion in long-term debt. This should have minimal impact on the company going forward, which currently has around $3.2 billion in current assets, including $580 million in cash.
Who missed out
I failed to consider Kellogg as a player for Pringles recently, viewing Kraft
What it all means
Procter & Gamble was anxious to get out of the food business, and the sale to Kellogg indicates this. I thought they would hold onto Pringles in an attempt to maximize the value, but agreeing to sell the company merely a week after the announced breakdown at Diamond Foods was quite impressive. To keep an eye on the developments of the deal for Pringles, add Kellogg to My Watchlist.
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