The Kellogg Company has entered into an agreement to acquire Ritmo Investimentos, the controlling shareholder of Brazilian food group Parati.
The purchase price is BRL 1.38 billion ($429 million) and the deal should be closed by late 2016. The acquisition is Kellogg’s largest in Latin America and will enable it to expand its presence in emerging markets.
Parati Group offers a wide range of iconic regional brands, including Parati, Pádua, Minueto, Zoo Cartoon and Hot Cracker biscuits, which make up approximately half of the company's business. The rest is comprised of Trink powdered beverages, Parati Lamen instant noodles and Parati dried pasta.
Parati Group has net sales of approximately BRL 600 million ($190 million), with 3,200 employees, including a sales force of approximately 1,300 people, serving about 60,000 customers directly.
This includes a strong presence in small to medium – or high-frequency – retail stores in Brazil, which are critical to reaching the country's growing population. The company also has five distribution centers and two production facilities with room for expansion.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.