Kellogg Company, best known for its Corn Flakes, Special K and Rice Krispies cereals, is buying Pringles from Proctor and Gamble (P&G) for $2.7bn.
P&G had been in negotiations to sell the potato crisp brand to US snack food company Diamond Foods, and after that deal fell through, Kellogg's stepped in with an offer.
The deal, which will see P&G sell the last of its food products, is expected to close this summer. Proctor and Gamble owns mainly household care and beauty brands.
Pete Dewar, founding partner of brand consultancy The Clearing, said the Pringles acquisition will allow Kellogg's to stretch its brand - currently largely breakfast-centred - across the entire day. He told New Statesman:
The character Pringle, that moustachio gentlemen, is an iconic character... They are buying a ready-made revenue generator. It really gives them a proper truly global snacks offer, and helps them become a truly global company.
Cans of Pringles are available in 140 countries, and at $1.5 billion in annual sales, the wavy crisps will be the number two brand for Kellogg's, behind Special K.
P&G said in a statement that "Kellogg is a strong strategic home for Pringles and will significantly accelerate Kellogg's goal of building a global snacks business on par with its global cereal business."
With the acquisition, Kellogg's will become the world's second largest snack company behind PepsiCo's Frito-Lay, which has more than 60 North American and international potato crisp brands.
Kellogg Company's stock closed up more than 5 per cent in US trading Wednesday.