Kellogg Company has entered into an acquisition agreement with controlling shareholder of Brazillian-based Parati S/A, Afical Ltda and Pádua Ltda Ritmo Investimentos. With expected net sales to come in at approximately R$600 million (or about US$190 million at current exchange rates), this is Kellogg’s largest acquisition in Latin America.
"With its outstanding portfolio of popular consumer brands, Parati Group is an excellent strategic fit for Kellogg and our business in Latin America," said John Bryant, Kellogg Company Chairman and CEO, according to a press release. "Brazil is the largest economy in Latin America and this acquisition will allow us to accelerate our growth and improve our margins in the region. This means more growth for the core Parati Group business and our well-loved Kellogg brands."
Financial details included:
The company commented that this move falls in line with its current goals of expanding its presence in emerging markets and becoming a global snacking powerhouse.
"The combination of Parati's portfolio and sales and distribution capabilities with Kellogg's global resources–including innovation expertise, extensive shopper insights and customer marketing strength–provides tremendous opportunity. Bringing our companies together enables us to expand our footprint in a rapidly growing market," said Maria Fernanda Mejia, President, Kellogg Latin America.
The group currently employs 3,200 people and serves a daily customer base upwards of 60,000. Regional brands include:
Parati also has five distribution centers and two production facilities with room for expansion.
"Parati Group has built a very successful business over the past four decades and we have a great deal of admiration and respect for them," continued Mejia. "They are highly entrepreneurial and strive to provide great-tasting foods consumers love while also fulfilling their founder's legacy. We are thrilled to welcome Parati Group to the Kellogg family."
This is Kellogg’s fourth acquisition in an emerging market in the last two years, including Europe, Asia Pacific, and more.