The NYSE-listed food manufacturer, Kellogg Company (Kellogg) has entered into a long-term partnership with food company Tolaram Africa, agreeing to pay about US$450million for a 50 per cent stake in Multi Pro and the option to purchase a stake in Tolaram Africa Foods.
Kellogg says that the partnership was expected to significantly increase its presence in the growing African market and advance its breakfast, snacks and emerging market strategies to drive future growth.
‘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 ten years, sub-Saharan Africa provides tremendous opportunity for our company,’ said Kellogg CEO and chairperson John Bryant. He noted that Tolaram Africa had built a highly successful consumer products business and was currently one of the largest food companies in Nigeria.
This partnership is an excellent strategic fit for Kellogg. Lagos-headquartered Tolaram member company Multi Pro, established in 1997, had strong sales and distribution infrastructure in Nigeria. The company, whose core business was the selling and distribution of Indomie noodles, provided access to about 1 000 exclusive distributors, 2 600 employees and 19 warehouses, across six locations. It was also establishing similar networks in other key African countries, including the Democratic Republic of Congo, Côte d’Ivoire, Cameroon and Ethiopia.
