Goldman Sachs Reports Procter & Gamble Merges Pringles Into Diamond Foods

According to Goldman Sachs, Procter & Gamble PG Goldman Sachs reported that P&G announced it has signed a definitive agreement to merge Pringles into Diamond Foods in a transaction valued at $2.35 billion ($1.5 billion equity and $0.85 billion debt as base-case) yesterday. “The news does not change our core view of the company due to the relatively minor financial implications. Of note, a successful transaction would mean that P&G had divested the non-core business with minimal dilution. We think investors have widely anticipated the sale based on the company's continued emphasis on its core HHPC businesses and gradual sales of Food assets. We are making no changes to our estimates or price target pending completion of the transaction.” Procter & Gamble closed yesterday at $61.67.