Kellogg Company to Acquire Brazilian Food Group Parati

The Kellogg Company has entered into an agreement to purchase Ritmo Investimentos, the controlling shareholder of the Parati Group, Brazil’s leading food companies, including Parati S/A, Afical Ltda, and Padua Ltda, the Battle Creek, MI-based company announced Thursday. The purchase price for the all-cash transaction is about $429 million.

“With its outstanding portfolio of popular brands, Parati Group is an excellent strategic fit for Kellogg and our business in Latin America,” said John Bryant, the chairman and chief executive officer of the Kellogg Company. “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 Parati Group, employing 3200 workers, produces regional brands like Parati, Minueto, Hot Cracker biscuits. Net sales are anticipated to total about $190 million. The group has two production facilities and five distribution centers in Brazil, Kellogg’s release noted, and has a strong presence in high-frequency, small- to medium-sized retail stores in the country.

“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. Bringing our companies together enables us to expand our footprint in a rapidly growing market,” said president of Kellogg Latin America Maria Fernanda Mejia in a statement.

According to Kellogg Company, this is the company’s fourth acquisition within the last two years to increase its footprint in emerging markets. This latest purchase must meet customary closing conditions and is expected to be completed in late 2016.

For related articles, news, and equipment reviews, visit our Equipment Zones