US cereal maker Kellogg has acquired Egypt's leading cereals company, Mass Food Group, for $50 million as part of its strategy to expand in North Africa, the company announced in a press release on Monday.
The deal is Kellogg's second acquisition in Egypt this year after the acquisition of baked goods producer Bisco Misr, and is part of a recent upturn for the Egyptian food industry.
"The announcement builds upon significant progress against our emerging market growth strategy announced earlier this year," John Bryant, the chairman and CEO of Kellogg Company, said in the press release.
Maker of Temmy's Cereal and NutriFit Cereal Bars, Mass Food Group achieved sales of up to $18 million annually with 600 employees.
Kellogg's does not expect to see its operating profits for 2015 impacted due to the size of annual sales by Mass Food Group.
As part of the growing interest in the Egyptian food sector, Cairo-based Pioneers acquired producer of Panda Cheese, Arab Dairy, earlier this year. While this month, the Saudi Halawani Brothers offered to buy Rashidi El-Mizan confectioner.