Diamond Foods has agreed to purchase Procter & Gamble's Pringles potato chips brand in a deal valued at $2.35 billion. Diamond claims that the acquisition will establish the company as second-largest global savory snacks business behind PepsiCo's Frito-Lay unit. The transaction is expected to close by the end of the year.
Diamond will reportedly more than triple the size of its snack business with the addition of Pringles. The company's other snacks include Emerald Nuts, Pop Secret microwave popcorn, acquired from General Mills Inc. for $190 million in 2008, and Kettle potato chips, purchased for $615 million last year. Diamond began in 1912 as a California walnut growers' cooperative and completed its public offering in 2005.