Kellogg acquires Chinese cookie and cracker maker
June 30, 2008
by Eric Schroeder
BATTLE CREEK, MICH. — The Kellogg Co. announced that one of its majority-owned subsidiaries has acquired substantially all of the assets of Zhenghang Food Company Ltd. (Navigable Foods), a manufacturer of cookies and crackers in the north and northeastern regions of China.
Financial terms of the transaction were not disclosed.
Founded in 1993, Navigable Foods is one of the major biscuit manufacturers in China, providing consumers with a variety of cookie and cracker products under the ZhengHang brand. The company had 2007 net sales of approximately $50 million, and operates two manufacturing facilities in Yishui county, Shandong province, and Fushun city, Liaoning, province.
"Geographic expansion in high-growth markets like China will help Kellogg Co. continue to deliver sustainable growth," said David Mackay, president and chief executive officer, Kellogg. "Navigable Foods’ biscuit products are a strong, strategic fit within the Kellogg portfolio and will further build our presence in China."
The business will continue to be headquartered in the city of Qingdao, Shandong province, and will be reported as part of Kellogg’s Asia Pacific business unit.