Kellogg Company Acquires Mass Food Group
Kellogg Company announces it has acquired Egypt's leading cereal company, Mass Food Group, advancing Kellogg's emerging market growth strategy. Kellogg Company has agreed to pay approximately $50 million for Mass Food Group with international cash on hand. As the number one cereal company in Egypt, Mass Food Group 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 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.
Today's announcement builds upon significant progress against Kellogg's emerging market growth strategy announced earlier this year. Kellogg acquired Bisco Misr, Egypt's leading packaged biscuit company, earlier this year. 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 salegg'ss and distribution company inNigeria and Ghana.
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.
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 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.
Today's announcement builds upon significant progress against Kellogg's emerging market growth strategy announced earlier this year. Kellogg acquired Bisco Misr, Egypt's leading packaged biscuit company, earlier this year. 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 salegg'ss and distribution company inNigeria and Ghana.
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.