P&G Jobs Impacted by Pringles Sale
April 11, 2011
Bizjournals reports, Procter & Gamble’s sale of Pringles to Diamond Foods Inc. will affect about 150 jobs in Cincinnati, mostly in brand management and research and development. P&G spokesman Paul Fox said these positions are part of more than 900 U.S. jobs tied to Pringles, which are manufactured in Jackson, Tenn. The business also has production facilities in Belgium, China and Malaysia, he said. Altogether the business employs about 1,600 globally. Details of the transaction and how P&G shareholders can elect to participate will be forthcoming, Fox said. P&G shareholders who elect to exchange their P&G shares will receive 29 million Diamond Foods shares and end up owning about 57 percent of Diamond’s stock. P&G will not receive any shares as part of the tax-free transaction, but Diamond will assume between $700 million and $1.05 billion of Pringles debt, depending on how much Diamond stock is worth when the deal closes. The deal will reduce P&G’s top line by about $1.4 billion annually based on estimated 2011 Pringles sales.