Kellogg Co has announced a deal to acquire a controlling stake in Parati Group, the privately-held local food major, in its largest purchase in Latin America.
The deal will see Kellogg buy Ritmo Investments, the controlling shareholder of the Parati Group, for 1.38bn reals (€394m). The Parati Group – consisting of the Parati, Afical, and Pádua firms – manufactures biscuits, pasta and powdered drinks under brands such as Hot Cracker, Trink, and Parati. The target group has two production plants and five distribution centres in Brazil.
The all-cash deal is Kellogg’s fourth in emerging markets in the last two years. The deal is expected to be neutral to adjusted earnings per share in the first two years after completion, and will add to earnings from 2018 onwards.