Kellogg Company Acquires Leading Egypt Cereal Company

Kellogg Company has acquired Egypt's leading cereal company, Mass Food Group, advancing Kellogg's emerging market growth strategy. "As the No. 1 cereal company in Egypt, Mass Food Group is an excellent strategic fit for Kellogg," says Chris Hood, president of 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." 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. "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. 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," says Tamer El Bahay, vice president at Mass Food Group. "Today's announcement builds upon significant progress against our emerging market growth strategy announced earlier this year," says John Bryant, chairman and CEO of Kellogg Company. "We are building a strong foundation for emerging market growth." Earlier this year, Kellogg acquired Bisco Misr, Egypt's leading packaged biscuit company. In mid-September, Kellogg Company announced a joint venture with Tolaram Africa to develop snacks and breakfast foods for the West African market, as well as noodles across Africa, which are often eaten at breakfast. In addition, Kellogg acquired 50 percent of Multipro, a premier sales and distribution company in Nigeria and Ghana. Kellogg Company has agreed to pay approximately $50 million for Mass Food Group. The company is financing the transaction with international cash on hand. Due to the size of Mass Food Group's annual sales, the transaction is not expected to have a material impact on Kellogg Company's annual operating profit and net earnings in 2015.