Kellogg Co. today announced it has acquired a majority stake in Bisco Misr, a Cairo-based biscuits company. The acquisition provides the Battle Creek-based business with new growth opportunities in Egypt and North Africa.
Bisco Misr, which employs 3,300 employees at three manufacturing facilities, counts Bisco Luxe, Chico Chico, and Bisco Wafers, among its most popular products. Given the company’s annual sales were approximately $70 million in 2013, the transaction is not expected to have a material impact on Kellogg’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, Kellogg’s chairman and CEO. “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.”
Kellogg will finance the deal with debt, paying $12.56 per share for 85.9 percent of Bisco Misr’s total outstanding shares.
“This is an exciting new chapter for two companies that thrive on beloved consumer brands,” Bryant says. “We’re delighted to welcome Bisco Misr to the Kellogg family.”