Kellogg Closes Acquisition of Majority Stake in Egypt's Bisco Misr.
M2 EQUITYBITES-January 15, 2015-Kellogg Closes Acquisition of Majority Stake in Egypt's Bisco Misr
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15 January 2015 - US cereal maker Kellogg Co. (NYSE: K) has acquired a majority stake in Egyptian packaged biscuits company Bisco Misr, the company said on Thursday.
The deal is worth around 125m.
Headquartered in Cairo, Bisco Misr offers brands including Bisco Luxe, Chico Chico and Bisco Wafers. With approximately 3,300 employees and three manufacturing facilities, Bisco Misr has a 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, Kellogg said.
Under the deal, Kellogg company paid EGP 89.86 per share for 85.93% of total outstanding Bisco Misr shares. Kellogg said it 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 USD 70m in 2013, the transaction is not expected to have a material impact on Kellogg company's annual operating profit and net earnings for 2015.
Kellogg won Bisco Misr following an active bidding war with Middle Eastern private equity firm Abraaj, after Abraaj threw in the towel on 31 December 2014.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Jan 15, 2015|
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