Kellogg Co. said it was paying $450 million to buy a 50% stake in Multipro, a sales and distribution company in Nigeria and Ghana, as the snack and breakfast foods company looks to expand in Africa. As part of its expansion plan, Kellogg said it created a joint venture with African food company Tolaram Africa, to develop snack and breakfast foods for the West African market. Kellogg has the right to buy a stake in Tolaram in the future. Total sales from from Kellogg’s moves are expected to be about $750 million in 2015. Kellogg said its purchase of the Multipro stake won’t affect 2015 or 2016 earnings, excluding transaction costs, but will add slightly to 2017 earnings. “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 Kellogg Chief Executive John Bryant. The stock, which is still inactive in premarket trade, has climbed 8.2% over the past three months, while the S&P 500 has lost 6.3%.
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