– Acquisition to provide new growth opportunities in Egypt and North Africa
BATTLE CREEK, Michigan, Jan. 15, 2015 / PRNewswire –
- @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.
About Kellogg Company
At Kellogg Company (NYSE: K), we are driven to enrich and delight the world through foods and brands that matter. With 2013 sales of $14.8 billion and more than 1,600 foods, Kellogg is the world’s leading cereal company; second largest producer of cookies, crackers and savory snacks; and a leading North American frozen foods company. Our brands – Kellogg’s®, Keebler®, Special K®, Pringles®, Kellogg’s Frosted Flakes®, Pop-Tarts®, Kellogg’s Corn Flakes®, Rice Krispies®, Kashi®, Cheez-It®, Eggo®, Mini-Wheats® and more – nourish families so they can flourish and thrive. Through our Breakfasts for Better Days® initiative, we’re providing 1 billion servings of cereal and snacks – more than half of which are breakfasts – to children and families in need around the world by the end of 2016. To learn more about Kellogg, visit www.kelloggcompany.com or follow us on Twitter @KelloggCompany.
Forward-Looking Statements Disclosure
This news release contains, or incorporates by reference, “forward-looking statements” with projections concerning, among other things, the acquisition of the Bisco Misr business, the Company’s strategy, and the Company’s operating profit, net earnings and debt levels. Forward-looking statements include predictions of future results or activities and may contain the words “expects,” “believes,” “should,” “will,” “anticipates,” “projects,” “estimates,” “implies,” “can,” or words or phrases of similar meaning.
The Company’s actual results or activities may differ materially from these predictions. The Company’s future results could also be affected by a variety of factors, including the realization of the anticipated benefits from the acquisition of the Bisco Misr business in the amounts and at the times expected, the impact of competitive conditions; the effectiveness of pricing, advertising, and promotional programs; the success of innovation, renovation and new product introductions; the recoverability of the carrying value of goodwill and other intangibles; the success of productivity improvements and business transitions; commodity and energy prices; labor costs; disruptions or inefficiencies in supply chain; the availability of and interest rates on short-term and long-term financing; actual market performance of benefit plan trust investments; the levels of spending on systems initiatives, properties, business opportunities, integration of acquired businesses, and other general and administrative costs; changes in consumer behavior and preferences; the effect of U.S. and foreign economic conditions on items such as interest rates, statutory tax rates, currency conversion and availability; legal and regulatory factors including changes in food safety, advertising and labeling laws and regulations; the ultimate impact of product recalls; business disruption or other losses from war, terrorist acts or political unrest; and other items.
Forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to update them publicly.