Kellogg, the US-based cereal and snack firm, has announced that it has reached an agreement to acquire Ritmo Investimentos, the controlling shareholder of Brazilian company Parati Group, which manufactures biscuits, powdered beverage & pasta brands.
According to the company, the acquisition is the company’s largest in Latin America to date and a step in the company’s strategy to become a global snacking powerhouse, expanding its presence in emerging markets.
“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, Kellogg Company chairman and CEO. “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”.
The purchase, which has a cost of R$1.38 billion ($429 million), is to be made all in cash and is expected to be finalized by the end of 2016.