In a deal valued at $2.35 billion, The Procter & Gamble Company (NYSE: PG) and Diamond Foods, Inc. (NASDAQ: DMND) announced they've signed an agreement to merge the Pringles unit into Diamond Foods.
Terms of the deal include $1.5 billion in Diamond common stock, which includes 29.1 million shares for approximately 57 percent of the outstanding shares of the combined company, and the assumption of $850 million of debt held by Pringles. Diamond's current shareholders would continue to own approximately 43 percent of the combined company.
Michael Mendes, Chairman, President and CEO of Diamond Foods, said, "Pringles is an iconic, billion dollar snack brand with significant global manufacturing and supply chain infrastructure. Our plan is to build upon the brand equity Pringles has established in over 140 countries. This strategic combination will create an independent, global leader in the snack industry with a focus on quality and innovative products. Not only is this combination immediately accretive, it also creates a platform that we believe will allow us to build shareholder value for years to come."
Estimated earnings before EBITDA, including $25 million in synergies, will come in at about $398 million to $410 million.
Tuesday, April 5, 2011
P&G (PG) Merging Pringles Into Diamond Foods (DMND)
Labels:
Diamond Foods,
Proctor and Gamble
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment