Kellogg partners Tolaram to Expand Presence in Africa
Kellogg Company announces a new, long-term partnership with leading food company Tolaram Africa, significantly increasing Kellogg’s presence in the growing African market and advancing the company’s breakfast, snacks and emerging market strategies to drive future growth.
Kellogg has agreed to pay approximately $450 million for a 50 percent 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.
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 Kellogg.
Tolaram Africa Foods owns 49 percent of Dufil Prima, which manufactures and markets several leading food brands, including Indomie noodles, which are often consumed at breakfast, as well as Minimie snacks, Power oil and Power pasta.
Multipro, established in 1997, has a strong sales and distribution infrastructure in Nigeria. Headquartered in Lagos, the company provides access to approximately 1,000 exclusive distributors, 2600 employees and operates 19 warehouses, across six locations.
It is also establishing similar networks in other key African countries including Democratic Republic of Congo, Ivory Coast, Cameroon and Ethiopia.·
Kellogg Company will fund the acquisition using international cash and an increase in commercial paper of $350 million.