US snacks manufacturer Kellanova has sold its majority stake in Egypt-based biscuit business Bisco-Misr.
Financial details were not disclosed.
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United Arab Emirates-headquartered conglomerate Hayel Saeed Anam Group (HSA) snapped up Kellanova’s shares in the biscuit company yesterday (10 September).
As the then Kellogg Company, Kellanova acquired Bisco-Misr in 2015 for a fee of $125m. The company said at the time the deal would help the Pringles owner expand its business in the Middle East.
Established in 1957, Bisco-Misr has manufacturing plants in Cairo and Alexandria. Its brands include Bisco Tea, Nice, Maamoul, Marie, Bisco Wafers and Seasonal Kahk.
HSA Group said the acquisition of Bisco-Misr will “help the group further develop their presence in Egypt and accelerate the internationalisation of Bisco-Misr’s popular brands”.
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By GlobalDataThe multi-billion-dollar conglomerate already produces and sells biscuit brands under names like Abu Walad and Teashop.
Muneer Hayel Saeed, a board member of HSA Group, said: “HSA Group is recognised across the Middle East for its wide expertise in the biscuits industry and its unwavering commitment to innovation and product excellence. We firmly believe that our agreement today will help open a remarkable growth for Bisco-Misr, a highly valued and iconic brand in Egypt.
“Bisco-Misr’s deep-rooted legacy and reputation perfectly align with our vision. We are committed to continuing to grow our investments in Egypt and tapping into the immense potential of this market, contributing to its economic prosperity while continuing to deliver the high-quality products that consumers love and trust.”
Robert Chanmugam, the MD of Kellanova’s operations in the Middle East, north Africa, Turkey and Sub-Saharan Africa at Kellanova, said: “Egypt is an important and strategic market for Kellanova with long-term growth opportunities.
“Since the time we began operations in 2015, we have remained committed to the country and will continue to invest to grow our business, develop local talent, and bring innovations to the marketplace across our diverse portfolio of cereals, snacks, and noodles products, offering diverse choices to meet the demand of Egyptian consumers.”
The Bisco-Misr disposal comes just one month after Mars struck a $36bn deal to take over Kellanova.
Privately-owned Mars agreed to pay $83.50 a share for a total consideration for the Pringles and Cheez-It brand owner of $35.9bn, more than the speculated price tag of around $30bn.
The companies expect the deal to close in the first half of 2025 once regulatory approvals are secured.
