The Kellogg Company has announced that it expects to complete the purchase of a majority stake in Egypt’s leading biscuit manufacturer within a week.
Bisco Misr’s shareholders have agreed to sell 86% of the business to the American cereal company, following the withdrawal of a number of rival bidders. Private equity firm The Abraaj Group followed Egypt’s Juhayna Food Industries and Saudi Arabia’s Halwani Bros. out of the bidding process after the Kellogg Company offered more than $12.50 per share.
The announcement will herald the end of a three-month tendering process that has seen the price of shares in Bisco Misr grow by 20%. Described by Kellogg’s as “one of the most recognized baked goods companies in Egypt”, Bisco Misr operates brands such as Bisco Luxe, Datto, Chico Chico and Bisco Wafers, and made a net profit of more than $5m in the 12 months to September 2014.
A Kellogg Company spokesperson indicated that “Kellogg was excited and delighted about the opportunity to work with such iconic brands in the rapidly growing Egyptian market,” but added that “it will not offer further details until the final transfer of the shares to Kellogg, expected to be on or around January 18, 2015.”
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