Investors Ignore JP Morgan Threat, Kellogg Stake $450mn in Fresh Acquisition 

Despite threat by JP Morgan to delist Nigeria from its Global Bond Index for Emerging Markets (GBI-EM),  Kellogg Company has announced the acquisition of 50 percent stakes at a cost of $450 million in Multipro, a premier sales and distribution company in Nigeria and Ghana in a new long-term partnership with leading food company Tolaram Africa.
It was expected that the delisting of Nigeria from the GBI-EM will send warning signals to investors who are expected to look else where.
Tolaram presently holds 49 percent stake in Dufil Prima manufactures and markets several leading food brands, including Indomie noodles. 
The acquisition has significantly increased Kellogg’s presence in the growing African market and advancing the company’s breakfast, snacks and emerging market strategies to drive future growth. 
According to John Bryant, Chairman and CEO, Kellogg Company, the new deal include the creation of a joint venture between Kellogg Company and Tolaram Africa to develop snacks and breakfast foods for the West African market.
Reports by Reuters said, the company has also been granted the right to acquire a stake in Tolaram Africa Foods (which owns 49 percent 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.
“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 John Bryant, Chairman and CEO, Kellogg Company.
“Tolaram Africa has built a highly successful consumer products business and today, it is one of the largest food companies in Nigeria,” said Bryant. “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.”
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’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,” said Amit Banati, President, Kellogg Asia Pacific.
“Kellogg is a world leader in its categories and has successfully built brands that are synonymous with it. We’re pleased to have entered into this partnership, as we share similar values and an aligned vision for Africa, a continent we have been operating in for over 35 years. This is another significant step towards providing affordable and wholesome nutrition for our expanding consumer base,” said Sajen Aswani, CEO, Tolaram Group.

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