Milling & Baking News - September 29, 2015 - 31

International

Kellogg invests in snacks, breakfast food in Africa
BATTLE CREEK, MICH. - The Kellogg Co. will increase
its presence in Africa through a partnership with Tolaram
Africa, Kellogg announced Sept. 15. The two companies
will create a joint venture to develop snacks and breakfast
foods for the West African market.
The deal includes Battle Creek-based Kellogg acquiring
50% of Multipro, a sales and distribution company in Nigeria
and Ghana, and Kellogg having the right to acquire a stake in
Tolaram Africa Foods in the future. Tolaram Africa Foods owns 49% of Dufil
Prima, which manufactures such food
brands as Indomie noodles, which often
are eaten at breakfast, as well as Minimie snacks, Power oil and Power pasta.
Kellogg has agreed to pay about $450
million for the stake in Multipro and the
option to buy the stake in Tolaram Africa
Foods. Total sales from Kellogg's moves
are expected to be about $750 million in 2015. The Kellogg
Co. will fund the acquisition using international cash and an
increase in commercial paper of $350 million.
"As a region that is experiencing explosive growth, with a
population of almost 1 billion people and an economy that
is expected to more than double over the next 10 years, SubSaharan Africa provides tremendous opportunity for our
company," said John Bryant, chairman and chief executive
officer of Kellogg. "Tolaram Africa has built a highly successful consumer products business, and today, it is one of the
largest food companies in Nigeria. Tolaram has a great track
record of building beloved consumer brands, including the
market leader Indomie noodles, and fueling their growth.
This partnership is an excellent strategic fit for Kellogg."
Multipro, based in Lagos, Nigeria, provides Kellogg access
to about 1,000 distributors, and Multipro operates 19 warehouses across 6 locations. Multipro is establishing similar

Dunkin' Donuts sets
sights on Switzerland
CANTON, MASS. - Dunkin' Donuts has signed a master franchise agreement with PRS Restaurants AG to begin
developing Dunkin' Donuts restaurants in Switzerland.
The franchise agreement calls for the development of 30
Dunkin' Donuts restaurants across Switzerland over the
next seven years, with an initial focus on Zurich and Basel.
"As we continue Dunkin' Donuts' expansion across Europe, we're very pleased to announce our upcoming entry
into Switzerland," said Paul Twohig, president of Dunkin'
Donuts U.S. and Canada, and Dunkin' Donuts & BaskinRobbins Europe and Latin America. "The leaders of our new
franchise group for Switzerland, PRS Restaurants AG, have
a wealth of local retail and business experience and a strong
history of success and teamwork in retail development."
Dunkin' Donuts currently has more than 11,400 restaurants in 39 countries, including more than 200 locations
across Europe in Austria, Bulgaria, Denmark, Germany,
Georgia, Luxembourg, Russia, Spain, Sweden and the
United Kingdom. The company's restaurants in Switzerland will feature the brand's range of hot and iced coffees,
lattes, espressos, cappuccinos, teas, Coolatta frozen drinks,
croissants, donuts and sandwiches. Dunkin' Donuts also
will offer regional menu items to cater to local tastes. MBN
bakingbusiness.com / world-grain.com

networks in other African countries, including the Democratic
Republic of Congo, the Ivory Coast, Cameroon and Ethiopia.
"Kellogg is a world leader in its categories and has successfully built brands that are synonymous with it," said
Sajen Aswani, c.e.o. of the Tolaram Group. "We're pleased
to have entered into this partnership, as we share similar
values and an aligned vision for Africa, a continent we
have been operating in for over 35 years. This is another
significant step toward providing affordable and wholesome nutrition for our
expanding consumer base."
The Tolaram Group, based in Singapore, has business interests in Asia, Africa and Europe. Its portfolio consists of
consumer goods, infrastructure, energy,
digital services and other services such as
distribution, financial services, paper products, real estate and textiles.
The Kellogg Co. said the estimated purchase price represents
a multiple of the average of 2014's actual EBITDA and 2015's
expected EBITDA of about 15 times. It represents a multiple
of about 13 times 2015's expected EBITDA. The final purchase
price is dependent on actual results for EBITDA in 2015.
The Kellogg Co. expects the transaction will not affect
reported earnings per share, excluding transaction and integration costs, in 2015 or 2016. Kellogg expects slight earnings accretion in 2017. MBN

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Milling & Baking News XSeptember 29, 2015 / 31

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Milling & Baking News - September 29, 2015

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