The US-based cereal and snack-food giant Kellogg Company announced Monday that it has acquired Egyptian cereal company Mass Food Group for US$50 million.
“As the number one cereal company in Egypt, Mass Food Group is an excellent strategic fit for Kellogg,” said Chris Hood, President, Kellogg Europe. “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.”
This marks the second acquisition for Kellogg’s in Egypt this year, with the company having acquired, in January 2015, an 85.93% stake in Egypt’s main biscuits and cakes producer, Bisco Misr, equivalent to EGP 9.8M.
Mass produces popular local brands like Temmy’s cereals and NutriFit snack bars, and exports to more than 30 international markets. It has annual sales of $18 million and 600 employees.
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Kellogg has been targeting expansion in Africa and other developing markets as demand for its products declines in the United States.The $50M that Kellogg’s has agreed to pay will see the company “financing the transaction with international cash on hand”, a company statement read.
Founded in 1996, Mass Food Group is a family-owned business headquartered in Cairo. As the first company to introduce breakfast cereal to Egyptian consumers, Mass Food Group has grown into an $18 million business (sales) with 600 employees in less than 20 years. The company makes such popular local brands as Temmy’s cereals and NutriFit cereal bars. Mass Food Group also exports foods to more than 30 markets, including Europe, East Asia and Africa.