Kellogg Company Announces Agreement To Acquire Procter & Gamble's Pringles Business

Kellogg Company announced that it has entered into an agreement to acquire Procter & Gamble's Pringles business for $2.695 billion. The companies expect to complete the transaction in the summer of 2012, pending necessary regulatory approvals. Kellogg Company has agreed to pay Procter & Gamble $2.695 billion in cash for the Pringles business. This is before significant future tax benefits. As a result, Kellogg anticipates increasing its outstanding debt by approximately $2 billion, and expects to limit its share repurchase program to proceeds received by the Company from employee option exercises for approximately two years to allow the Company to reduce the increased levels of debt.