FDBusiness.com

Kellogg Company has agreed to acquire a 50% stake in Multipro, a premier sales and distribution company in Nigeria and Ghana, for about $450 million and has simultaneously formed 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.

The joint venture between Kellogg and Tolaram Africa will develop snacks and breakfast foods for the West African market. Kellogg also now has the right to acquire a stake in Tolaram Africa Foods (which owns 49% of Dufil Prima) in the future. Dufil Prima 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.

John Bryant, chairman and chief executive of Kellogg Company.

“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,” explains John Bryant, chairman and chief executive of Kellogg Company. “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.”

Established in 1997, Multipro has a strong sales and distribution infrastructure in Nigeria. It is also establishing similar networks in other key African countries including Democratic Republic of Congo, Ivory Coast, Cameroon and Ethiopia. The purchase price represents a multiple of 13 times Multipro’s expected EBITDA for 2015. The final purchase price is dependent on actual results for EBITDA in 2015.