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Kellogg to Buy P&G's Pringles for $2.7B (Update 1)

NEW YORK ( TheStreet) -- Procter & Gamble (PG - Get Report) terminated the sale of its Pringles business to Diamond Foods (DMND )and will instead sell the operation to Kellogg (K - Get Report).

Kellogg agreed to buy Pringles for $2.695 billion.

"Pringles is an excellent strategic fit for Kellogg Company. It significantly advances the company's goal of building a global snacks business on par with its global cereal business," Kellogg said in a statement Wednesday.

For Diamond Foods, its "transformational" plan to buy Pringles may turn out to be the deal that transformed the company into a financial mess.

Diamond Foods may have pushed too hard on its finances to cut the acquisition. While the Pringles deal would have more than doubled the company's sales, it also would have doubled its liabilities.

-- Written by Joseph Woelfel

>To contact the writer of this article, click here: Joseph Woelfel

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