- Acquisition to provide new growth opportunities in Egypt and North Africa
- Kellogg Company acquires majority stake in Bisco Misr, leading Egyptian biscuits company
- Kellogg Company majority stake in Bisco Misr provides new growth opportunities in Egypt and North Africa
Kellogg Company (NYSE: K) today announced it has acquired a majority stake in Bisco Misr, the number one packaged biscuits company in Egypt. This transaction advances Kellogg's global snacks business in growing emerging markets.
"Bisco Misr is an excellent strategic fit for Kellogg, and Egypt is a growing market with a strong economy," said John Bryant, Chairman and CEO, Kellogg Company. "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."
Headquartered in Cairo, Bisco Misr is a publicly-held company listed on the Egyptian Exchange. One of the most recognized baked goods companies in Egypt, Bisco Misr offers such highly popular brands as Bisco Luxe, Chico Chico and Bisco Wafers. With approximately 3,300 employees and three manufacturing facilities, Bisco Misr has a strong history in the Egyptian market dating back to 1957.
Bisco Misr's manufacturing capabilities, skilled labor and go-to-market infrastructure, coupled with Kellogg's technology, iconic brands and marketing expertise, will enable both to emerge stronger in Egypt and other North African countries.
"This is an exciting new chapter for two companies that thrive on beloved consumer brands," said Bryant. "We're delighted to welcome Bisco Misr to the Kellogg family."
Details of the Transaction
Kellogg Company has agreed to pay EGP 89.86 per share for 85.93% of total outstanding Bisco Misr shares.
Kellogg Company is financing the transaction with debt.
Due to the size of Kellogg's percentage ownership, the company will consolidate Bisco Misr's results into its own.
As Bisco Misr's annual sales were approximately $70 million in 2013, the transaction is not expected to have a material impact on Kellogg Company's annual operating profit and net earnings for 2015.
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