Kellogg acquires majority stake in Egyptian biscuits company
Kellogg Co., Battle Creek, MI, has acquired a majority stake in Bisco Misr, the No. 1 packaged biscuits company in Egypt. Kellogg has agreed to pay EGP 89.86 per share for 85.93 percent of total outstanding Bisco Misr shares and is financing the transaction with debt.
Due to the size of Kellogg’s percentage ownership, it 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.
“Bisco Misr is an excellent strategic fit for Kellogg, and Egypt is a growing market with a strong economy,” says John Bryant, chairman and CEO, Kellogg Co. “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.”
Based 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 brands as Bisco Luxe, Chico Chico and Bisco Wafers. With approximately 3,300 employees and three manufacturing facilities, the company 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,” says Bryant. “We’re delighted to welcome Bisco Misr to the Kellogg family.”