Food maker acquires Egyptian company for $50M
A food maker has acquired another African company.
Battle Creek-based Kellogg Co. said today that it has acquired Egypt’s leading cereal company, Mass Food Group.
Kellogg agreed to pay about $50 million for the company, financing the deal with international cash.
The transaction is not expected to have a “material impact” on Kellogg’s opertaing profit and net earnings in 2015, because of the “size of Mass Food Group’s annual sales.”
"As the number-one cereal company in Egypt, Mass Food Group is an excellent strategic fit for Kellogg," Kellogg Europe President Chris Hood said. "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."
Mass Food Group was founded in 1996 and has grown into a 600-employee company with more than $18 million in annual sales.
The company makes local products such as Temmy’s cereals and NutriFit bars. It also exports foods to more than 30 markets in Africa, east Asia and Europe.
"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,” Mass Food Group VP Tamer El Bahay said. “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.”
"Emerging market" strategy
The Mass Food Group acquisition is the most recent in a line of African acquisitions by Kellogg this year.
Earlier this year, Kellogg acquired Egypt’s leading biscuit company, Bisco. In September, Kellogg announced a joint venture with Tolaram Africa to develop products for west African markets. Kellogg has also acquired 50 percent of Multipro, a sales and distribution company in Nigeria and Ghana.
"Today's announcement builds upon significant progress against our emerging market growth strategy announced earlier this year," Kellogg Chairman and CEO John Bryant said. "We are building a strong foundation for emerging market growth."