Diamond Foods, the US food manufacturer, also owns the Kettle chips brand, Diamond of California and Emerald nuts brands and microwave popcorn brand Pop Secret.
The acquisition will triple Diamond’s existing business and create a snack-food company with revenue of approximately $2.4bn and estimated earnings of $410m, according to the companies.
Pringles is P&G’s last remaining food brand and the decision to divest the brand allows the FMCG company to focus on its three core businesses: beauty and grooming, household care, and health and wellbeing.
The sale of Pringles has long been rumoured, but a previous attempt to merge the brand with Diamond Foods is thought to have been rejected last year.
Under the terms of the deal, P&G will establish a separate entity to hold the Pringles business, which will merge with Diamond.
P&G says the deal will give its shareholders a one-time earnings increase for P&G of approximately $1.5bn or $0.50 per share.
Michael J. Mendes, chairman, president and CEO of Diamond Foods, says: “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.”
The deal is expected to be completed by the end of the year.