BATTLE CREEK, MICH. — The Kellogg Co. has entered into an agreement to acquire Ritmo Investimentos for approximately $429 million in cash. Ritmo is a controlling shareholder of Parati S/A, Afical Ltda and Pádua Ltda (Parati Group), a Brazilian food group.
The acquisition is Kellogg’s largest in Latin America and furthers two of the company’s strategic priorities of becoming a “global snacking powerhouse” and expanding its presence in emerging markets, Kellogg said.
Parati Group offers a range of regional brands, including Parati, Pádua, Minueto, Zoo Cartoon and Hot Cracker biscuits, which make up approximately half of the company’s business. The remainder of the business is comprised of Trink powdered beverages, Parati Lamen instant noodles and Parati dried pasta.
|John Bryant, chairman and c.e.o. of Kellogg|
“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, chairman and chief executive officer of the Kellogg Co. “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.”
Parati Group net sales are expected to be approximately $190 million, and Kellogg said it expects the acquisition to be accretive on both comparable and reported earnings per share in 2018 and after.
Parati Group operates five distribution centers and two production facilities, employing 3,200 people. The company’s salesforce includes approximately 1,300 people serving about 60,000 customers directly.
“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,” said Maria Fernanda Mejia, president of Kellogg Latin America. “Bringing our companies together enables us to expand our footprint in a rapidly growing market.”The acquisition of Parati Group marks Kellogg’s fourth emerging market acquisition in the last two years. In that time, Kellogg acquired companies in each of its international regions. In Europe, the company acquired Bisco Misr and Mass Food Group in Egypt, and in Asia Pacific, Kellogg purchased a 50% stake in Multipro in Nigeria and Ghana. The addition of Parati furthers Kellogg’s emerging market growth strategy, the company said.