International food manufacturer Kellogg’s has acquired Mass Food Group, Egypt’s leading cereal company, in a deal worth approximately $50m, Kellogg’s announced on Monday.
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.
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 Food Group started operations as a family business in Egypt in 1996. Amongst the brands introduced by the company are NutriFit cereal bars and Temmy’s cereals. The company exports to over 30 markets, including in Africa, Europe and East Asia.
In less than 20 years, Mass Food Company has grown to record sales of $18m, with the group employing approximately 600 employees.
“As the number one cereal company in Egypt, Mass Food Group is an excellent strategic fit for Kellogg’s,” said Chris Hood, President of Kellogg’s 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.”
Tamer El-Bahay, Vice President of Mass Food Group, said that his family is proud of Kellogg’s acquisition of their company.
“With their know-how and expertise, we can emerge stronger together with a combined portfolio of brands to excite our consumers,” he said.
Kellogg’s, which employs approximately 30,000 employees distributed in various markets, recorded sales figures in 2014 of $14.6bn. It is considered the world’s leading cereal company, a leading North American frozen foods company and the second largest biscuit producer worldwide. The company’s products are available in 180 countries.