Multipro a Nigerian based food distributor will be bought by Kellogg.Co a popular American food manufacturing company, for $450 million. This new development comes on the heels of a joint venture between Kellogg and Tolaram Africa to aid expansion plans on the continent.
The joint venture with Tolaram includes an option for Kellogg to buy a stake in the African company in the future, the American cereal giant said in a statement Tuesday. Costs associated with the Multipro deal will reduce earnings per share by 1 cent in the third quarter, according to Kellogg.
The Kellog-Tolaram partnership will see Kellog coming up with breakfast meals and snacks for the African market. This will definitely spur the growth of the company on the continent as more Americans look to meals-on-the-go. No doubt the African market will prove to be a fertile ground for the American company even as Africa exhibits potential for rapid development and growth in recent times