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Kellogg Buys United Bakers Group
BATTLE CREEK — Kellogg Co. announced today that it has acquired the United Bakers Group, one of Russia’s largest cracker, biscuit and breakfast cereal producers. Terms of the transaction were not disclosed.
The acquisition includes United Bakers’ six manufacturing facilities located throughout Russia, as well as its large sales and distribution network. United Bakers’ nearly 4,000 employees will join Kellogg and its management team. The business will remain headquartered in Voronezh, Russia, and will report to Kellogg’s European business unit.
United Bakers’ products are marketed primarily under the Yantar and Lyubyatovo brands. The company’s 2007 net sales were approximately $100 million. Kellogg indicated that the purchase is not expected to have a material impact on its 2008 operating profit.
“The acquisition of United Bakers is an exciting strategic development for Kellogg,” said Kellogg President and CEO David Mackay. “United Bakers is a leading producer of high quality cereals and biscuits, and its existing operations will help us establish a considerable presence in this large and fast-growing market.”