(REUTERS) -- Kellogg Co. said on Wednesday it will buy the Pringles business from Procter & Gamble Co. for $2.7 billion in cash, as it aims to build its position in the global snacks market comparable to its strength in the cereal business.

P&G agreed to sell Pringles to Diamond Foods Inc last year, but the deal fell apart because of delays caused by a U.S. probe into Diamond's accounting practices.

P&G said the deal with Kellogg would be completed by this summer.

P&G said the deal would lead to an after-tax gain from the deal of $1.4 billion to $1.5 billion, or 47 cents to 50 cents per share, which it was the same as estimated when it first announced the deal with Diamond last year.

About 1,700 employees will move to Kellogg.

Pringles has about $1.5 billion in annual sales.

Kellogg will borrow $2 billion to complete the deal and expects to limit its share repurchase program for about two years. The deal will add 8 to 10 cents per share before the impact of the deal to Kellogg's 2012 earnings.

Including those one-time costs, the deal will lower Kellogg's earnings per share in 2012 by 11 to 16 cents.

P&G said that if the deal gets done this fiscal year, it would earn $3.77 to $3.93 per share including the one-time gain from the deal.

Kellogg shares were up 3.4 percent in premarket trading.