EGYPT – Kellanova, a prominent snacks manufacturer based in the United States, has announced the sale of its majority stake in Bisco-Misr, a leading Egyptian biscuit manufacturer.
This move, finalised on September 10, 2024, marks a significant shift in Kellanova’s operations in the Middle East and reflects the company’s ongoing efforts to streamline its business portfolio.
Founded in 1957, Bisco-Misr operates production facilities in Cairo and Alexandria. It produces well-known brands such as Bisco Tea Nice, Kaak, and Bisco Wafers.
Kellanova, formerly the Kellogg Company, acquired Bisco-Misr in 2015 for approximately US$125 million, aiming to expand its footprint in the Middle Eastern market.
However, the financial details of the recent transaction have not been disclosed.
The acquisition by HSA Group, a conglomerate based in the United Arab Emirates, is expected to enhance the group’s presence in Egypt and facilitate the global expansion of Bisco-Misr’s products.
HSA Group already has a strong portfolio in the biscuit sector, manufacturing brands like Abu Walad and Teashop.
Hayel Sed, a board member of HSA Group, expressed enthusiasm about the acquisition, stating, “HSA Group is well-known throughout the Middle East for its extensive expertise in the biscuit sector and its steadfast dedication to innovation and product quality.
‘’We believe that our partnership today will unlock significant growth for Bisco-Misr, a cherished and historic brand in Egypt.”
Sed emphasized the alignment of Bisco-Misr’s rich heritage with HSA Group’s vision for regional growth.
“We are dedicated to increasing our investments in Egypt and harnessing the vast potential of this market, which will contribute to its economic growth while consistently providing high-quality products that consumers appreciate and trust,” he added.
Robert Chanmugam, Managing Director of Kellanova’s operations in the Middle East, North Africa, Turkey, and Sub-Saharan Africa, highlighted Egypt’s importance as a strategic market for the company.
“Since our entry into the market in 2015, we have been devoted to the country and will persist in investing to expand our business, nurture local talent, and introduce innovations across our varied range of cereals, snacks, and noodle products, catering to the preferences of Egyptian consumers,” he remarked.
This divestiture follows Mars, Incorporated’s announcement of a US$36 billion acquisition of Kellanova.
Pending regulatory approvals, the acquisition is expected to be finalized in the first half of 2025.
Mars has agreed to pay US$83.50 per share for Kellanova, surpassing earlier estimates and reflecting the growing interest in the snack food sector.
Kellanova’s decision to sell its stake in Bisco-Misr aligns with its broader strategy of focusing on core operations while adapting to the evolving market landscape.
The transaction opens new avenues for Bisco-Misr under HSA Group’s stewardship and allows Kellanova to concentrate on its primary markets and product lines.
As Kellanova continues to navigate the complexities of the global snack industry, the sale of Bisco-Misr is a pivotal moment in its journey, illustrating the dynamic nature of business in the food sector.
The future of Bisco-Misr appears promising under HSA Group, with expectations of enhanced growth and innovation in the Egyptian market.
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