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Tuesday, April 5, 2011

Diamond Foods snacks on Pringles with $1.5 billion buy

Diamond Foods Inc plans to buy Pringles from Procter & Gamble Co for $1.5 billion in stock, tripling the size of a company that has been binging on snack foods while marking P&G's long expected exit from the food business. Pringles, known for its potato chips sold in more than 140 countries, will expand Diamond's global footprint and more than double its sales in the United States and the UK -- making it the second biggest snack foods company in the world behind PepsiCo Inc . Shares of Diamond Foods rose as much as 12 percent on Tuesday.