Kellogg’s acquires $420 million stake in African joint venture
By NewsDesk - May 7th, 09:31
Kellogg’s has exercised an option to acquire a stake in packaged food manufacturer Tolaram Africa Foods (TAF), – a subsidiary of Tolaram Group – for $420 million, as the company seeks to expand its presence in the African market.
Kellogg’s formed a joint venture agreement with Singapore-based Tolaram in 2015, which saw both companies take a 50% stake in distributor Multipro, and part of the deal stated that Kellogg had the option to acquire a stake in TAF in the future, which it has now exercised.
TAF is one of the largest manufacturers and distributors of noodle products in both Ghana and Nigeria, and its products are distributed by Multipro.
Both Kellogg’s and Tolaram also created the joint venture company Kellogg Tolaram Nigeria Limited (KTNL) in January 2016, which markets and distributes breakfast cereals and snacks in the West African market.
Kellogg’s revealed details of this acquisition in its first-quarter financial results, and a statement said that the increased stake will “cement the company’s position in this overall business, enabling the pursuit of further growth opportunities.”
Steve Cahillane, Kellogg’s chairman and chief executive officer, said: “Expansion in emerging markets is an important element of our growth strategy.
“Africa offers incredible growth opportunities, and our experience partnering with Tolaram over the past couple of years have confirmed that we have a strong relationship, attractive brands, local expertise, and a proven business model."
“Our additional investment is a statement of confidence in this venture, and the consolidation of Multipro’s results means that investors will now have visibility into its strong growth.”
Amit Banati, president of Kellogg Asia-Pacific added: “We have been delighted with our partnership with Tolaram."
“Multipro is an unrivalled distributor in West Africa, with best-in-class logistics and consumer activation capabilities."
“Our investment in TAF links us to a leading packaged foods company in that market, with key brand building capabilities and share leadership in the noodles category."
“And our KTNL joint venture recently launched in Nigeria Kellogg cereals, which are locally produced and off to a strong start."
“Together, with Tolaram, we are excited about the potential to expand cereal and snacks across West Africa, and noodles across the entire continent.”
© FoodBev Media
Long4Life acquires leading footwear and clothing brand, Rage
26/06/2018 - 15:03
Investment company Long4Life is delighted to announce its acquisition of the entire issued share capital of Rage Distribution Proprietary Limited (Rage).
Richemont lifts its game plan with Watchfinder deal
13/06/2018 - 09:14
Richemont, the Swiss luxury brands group run by the Rupert family, has taken another step in its aggressive plan to build a formidable retail network.
Competition Commission gives Billabong takeover the green light
13/04/2018 - 08:10
The Competition Commission has approved, with conditions, the acquisition of Australian surf-wear retailer Billabong by global apparel business Boardriders, formerly known as Quiksilver.
Reynolds acquisition helps BAT offset fall in cigarette sales
22/02/2018 - 13:58
British American Tobacco (BAT) managed to offset a decline in cigarette sales in most countries in 2017 by entering the US via its £41.8bn acquisition of Reynolds.
Carlsberg completes acquisition of Greek brewer Olympic
07/02/2018 - 13:42
Carlsberg has completed the full acquisition of Greece’s second-largest brewer Olympic Brewery, strengthening the brand’s position in the southern European market.