Kellogg Company partners with Tolaram Africa
The partnership will boost the presence of Kellogg's in the African market. Kellogg's produces a variety of breakfast foods and snacks.
Under the terms of the agreement, Kellogg's will acquire half of Multipro, a sales and distribution company with facilities in Nigeria and Ghana. Additionally, the company will have the option to acquire a financial stake in Tolaram Africa Goods, which markets an array of food brands including Indomie noodles, Minimie snacks, Power oil and Power pasta.
"As a region that is experiencing explosive growth, with a population of almost 1 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," John Bryant, chairman and chief executive officer of Kellogg, said. "Tolaram Africa has built a highly successful consumer products business and today, it is one of the largest food companies in Nigeria. 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."
Amit Banati, president of Kellogg Asia Pacific, agreed.
"Kellogg's well-known and iconic brands and our research and development expertise, combined with Tolaram's strong local sales, marketing, supply chain and distribution capabilities, positions us to become a breakfast and snacks leader in a thriving market," he said.
Sajen Aswani, chief executive officer for Tolaram Group, said his company was "pleased to have entered into this partnership."
"We share similar values and an aligned vision for Africa, a continent we have been operating in for over 35 years," he said. "This is another significant step towards providing affordable and wholesome nutrition for our expanding consumer base."
Kellogg has agreed to pay $450 million for a stake in Multipro and the option to purchase a stake in Tolaram Africa Foods. Total sales are expected to be approximately $750 million in 2015.