BATTLE CREEK, Mich., Sept. 28, 2015 /PRNewswire/ --
Tweetable Highlights:
- @KelloggCompany buys Mass Food Group, Egypt's leading cereal company
- @KelloggCompany expands emerging market presence w/ Mass Food Group acquisition
Kellogg Company (NYSE: K) today announced it has acquired Egypt's leading cereal company, Mass Food Group, advancing Kellogg's emerging market growth strategy.
"As the number one cereal company in Egypt, Mass Food Group is an excellent strategic fit for Kellogg," said Chris Hood, President, Kellogg Europe. "The combination of Mass Food Group's manufacturing capabilities, established local brands, and sales and distribution infrastructure, coupled with Kellogg's product innovation, international sales knowledge, iconic brands and marketing expertise, will help unlock the growth potential of the cereal category in the key markets of Egypt and North Africa."
Founded in 1996, Mass Food Group is a family-owned business headquartered in Cairo. As the first company to introduce breakfast cereal to Egyptian consumers, Mass Food Group has grown into an $18 million business (sales) with 600 employees in less than 20 years. The company makes such popular local brands as Temmy's cereals and NutriFit cereal bars. Mass Food Group also exports foods to more than 30 markets, including Europe, East Asia and Africa.
"On behalf of the El Bahay family, I would like to say how proud we are to have been acquired by Kellogg Company, the world's leading cereal producer. With their know-how and expertise, we can emerge stronger together with a combined portfolio of brands to excite our consumers. We know the dedicated people of Mass Food Group, who have helped make this company a success, will continue to grow and develop under Kellogg's leadership," said Tamer El Bahay, Vice President, Mass Food Group.
"Today's announcement builds upon significant progress against our emerging market growth strategy announced earlier this year," said John Bryant, Chairman and CEO, Kellogg Company. "We are building a strong foundation for emerging market growth."
Earlier this year, Kellogg acquired Bisco Misr, Egypt's leading packaged biscuit company. And in mid-September, Kellogg Company announced a joint venture with Tolaram Africa to develop snacks and breakfast foods for the West African market, as well as noodles across Africa, which are often eaten at breakfast. In addition, Kellogg acquired 50 percent of Multipro, a premier sales and distribution company in Nigeria and Ghana.
"We're delighted to welcome Mass Food Group to the Kellogg family," added Bryant.
Financial Details of the Transaction
- Kellogg Company has agreed to pay approximately $50 million for Mass Food Group.
- Kellogg Company is financing the transaction with international cash on hand.
Due to the size of Mass Food Group's annual sales, the transaction is not expected to have a material impact on Kellogg Company's annual operating profit and net earnings in 2015.
About Kellogg Company
At Kellogg Company (NYSE: K), we are driven to enrich and delight the world through foods and brands that matter. With 2014 sales of $14.6 billion and more than 1,600 foods, Kellogg is the world's leading cereal company; second largest producer of cookies, crackers and savory snacks; and a leading North American frozen foods company. Our brands – Kellogg's®, Keebler®, Special K®, Pringles®, Kellogg's Frosted Flakes®, Pop-Tarts®, Kellogg's Corn Flakes®, Rice Krispies®, Kashi®, Cheez-It®, Eggo®, Mini-Wheats® and more – nourish families so they can flourish and thrive. Through our Breakfasts for Better DaysTM initiative, we're providing 1 billion servings of cereal and snacks – more than half of which are breakfasts – to children and families in need around the world by the end of 2016. To learn more, visit www.kelloggcompany.com or follow us on Twitter @KelloggCompany, YouTube and on Social K.
Forward-Looking Statements Disclosure
The "forward-looking statements" contained herein inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in those statements, including the realization of the anticipated benefits from the acquisition of Mass Food Group and the other factors discussed in the risk factors section of Kellogg Company's most recent annual report on Form 10-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they were made. The Company undertakes no obligation to update them publicly.
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SOURCE Kellogg Company