Nigeria: Kellogg to spend $450 million on expansion
In a bid to boost its presence in Africa, Kellogg has announced that it is set to spend $450 million to acquire a 50% stake in Multipro, a food sales and distribution firm based in Lagos, Nigeria.
Multipro is owned by Tolaram, and Kellogg will also have an option to buy a stake in Tolaram's African unit Tolaram Africa Foods which owns 49% of Dufil Prima Foods , the maker of Indomie Noodles, Minimie Snacks, Power Oil and Power Pasta.
Kellogg said that it intended to use the joint venture to develop snacks and breakfast foods for the west African market. It will also get access to Multipro's distribution network countries which currently covers the Democratic Republic of Congo, Ivory Coast, Cameroon and Ethiopia, as well as Nigeria.
"As a region that is experiencing explosive growth, with a population of almost one billion people and an economy that is expected to more than double over the next 10 years, Sub-Saharan Africa provides tremendous opportunity for our company", said John Bryant, Kellogg chairman and CEO.
"Tolaram Africa has built a highly successful consumer products business and today, it is one of the largest food companies in Nigeria", he added. "Tolaram has a great track record of building beloved consumer brands, including the market leader Indomie noodles, and fueling their growth. This partnership is an excellent strategic fit for Kellogg".