Kellogg acquires Russian cookie and cereal maker
January 17, 2008
by Josh Sosland
BATTLE CREEK, MICH. — The Kellogg Co. has acquired The United Bakers Group, a ranking producer of cookies and crackers as well as ready-to-eat breakfast cereal. Terms of the transactions were not disclosed.
Based in Voronezh in southwestern Russia, United Bakers Group had annual sales in 2007 of about $100 million. The company’s products are marketed primarily under the Yantar and Lyubyatovo brands. Kellogg said the brands hold the No. 1 or No. 2 positions in their respective categories. The company said the transaction would not materially affect Kellogg financial results in 2008.
"Consistent with our strategy, we continue to pursue the right kind of opportunities to grow our business," said David Mackay, president and chief executive officer, Kellogg. "The acquisition of United Bakers in Russia is an exciting strategic development for Kellogg. United Bakers is a leading producer of high quality cereals and biscuits, and its existing operations will help us establish a considerable presence in this large and fast-growing market."
Kellogg said the 4,000 United Bakers employees would be joining Kellogg, including the company’s management. In addition to the company’s brands, Kellogg has acquired United Bakers’ six manufacturing facilities through Russia as well as its sales and distribution network. Kellogg said headquarters would remain in Voronezh and that the business would report into Kellogg’s European business unit.