Food maker acquires majority stake in $70M Egyptian company
A food maker in the region has bought a majority stake in a $70-million Egyptian company.
Kellogg Co. in Battle Creek said today that it has acquired the stake in Cairo-based Bisco Misr, the leading biscuit maker in Egypt.
The deal will give Kellogg new opportunities in Egypt and north Africa.
Bisco Misr sold approximately $70 million worth of product in 2013.
Kellogg will finance the deal with debt. It bought 85.93 percent of outstanding Bisco Misr shares for EGP 89.86 per share.
"This is an exciting new chapter for two companies that thrive on beloved consumer brands," said John Bryant, chairman and CEO, Kellogg. "We're delighted to welcome Bisco Misr to the Kellogg family."
Bisco Misr produces brands such as Bisco Luxe, Chico Chico and Bisco Wafers and employs approximately 3,300 people in three manufacturing facilities.
The biscuit maker's history dates back to 1957.
"Bisco Misr is an excellent strategic fit for Kellogg, and Egypt is a growing market with a strong economy," Bryant said. "A number of Kellogg's cereals and snacks are already offered in the market, and the combination of the powerful Bisco Misr brands with Kellogg's iconic brands provides a tremendous opportunity for growth."