Kellogg has agreed to purchase a 50% stake in Multipro, a Nigerian food distributor, for some $450 million. Costs associated with the Multipro deal will reduce earnings per share by 1 cent in the third quarter, according to Kellogg.
The deal will also result in a joint venture between Kellogg and Tolaram Africa, aiding the former's expansion on the continent. The Tolaram venture includes an option for Kellogg to buy a stake in the African company in the future.
Kellogg CEO John Bryant said in a statement that sub-Saharan Africa, with its population of almost 1 billion and an economy expected to more than double over the next decade, is a "tremendous opportunity" for the company.
Bryant, an Australian by birth and a CA, has been with the Kellogg Company since 1998. In July 2007, he became Executive VP and CFO, as well as President, of Kellogg North America. In August 2008, he became Executive VP, COO and CFO of the Kellogg Company. He served as CFO until December 2009. Since 2011, he has been company CEO.
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