Pringles Sold to Diamond Foods
This video is no longer available.
There is a big change going on in the business community in West Tennessee, as Pringles, a 40-year-old staple in the Jackson community, is sold. Tuesday morning, Diamond Foods Incorporated announced it is buying the snack food brand for $2.35 billion from Proctor and Gamble. That allows Diamond Foods to take over the plant in Jackson, as well as the one in Belgium. The news does not come so much as a shock to many in the area. Proctor and Gamble has slowly been phasing out their food brands. Nelson Perez lives in West Tennessee and said, “My initial reaction was Proctor and Gamble finally did it. They got out of the food business totally.” Corporate leaders say they want to focus their attention on their other brands, such as Tide and Gillette, to name a few. But, not to worry, Proctor and Gamble tells ABC 7 Eyewitness News that Diamond Foods plans on keeping the vast majority of Jackson’s 740 employees, as well as the plant. Perez adds, “I just don’t see them changing their operation in any way. This plant here is successful. They have always done well and I don’t think there’s any reason to expect any change.” The transaction, which includes assuming $850 million of Proctor and Gamble’s debt, should be finalized by the end of the year. In the meantime, plant leaders say they will meet with each and every employee individually to discuss the changes headed their way. Susan Douglas, a resident, said, “It’s best to think positively first and negatively later if you have to.” It is too early to tell what Diamond Foods has in store for the plant or if this deal will have a positive or negative effect on the community. Still many believe the merger will give Pringles and its employees the chance to grow under new leadership. According to the news release, the merger still must be approved by Diamond Foods shareholders.
