American cereal producer Kellogg has completed the acquisition of a majority stake in Egyptian cake and biscuit maker Bisco Misr, in a previously announced deal worth $125m.
Kellogg has agreed to pay £89.86 per share for 85.93% of total outstanding Bisco Misr shares.
BiscoMisr owns three main facilities, one in Cairo and two in Alexandria, where it produces and distributes plain biscuit Luxe, alongside BiscoMisr's range of cakes and wafers.
Headquartered in Cairo, Bisco Misr employs 3,300 people and offers its products under various brands such as Bisco Luxe, Chico Chico and Bisco Wafers.
Commenting on the acquisition, Kellogg chairman and CEO John Bryant said: "Bisco Misr is an excellent strategic fit for Kellogg, and Egypt is a growing market with a strong economy.
"A number of Kellogg's cereals and snacks are already offered in the market and the combination of the powerful Bisco Misr brands with Kellogg's iconic brands provides a tremendous opportunity for growth."
Bisco Misr generated close to $70m in annual sales during 2013. However, Kellogg will now consolidate Bisco Misr's results into its own as it has majority ownership in the cake maker.
Image: BiscoMisr owns three main facilities, where it produces and distributes range of cakes and wafers. Photo: courtesy of Simon Howden / freedigitalphotos.net.
