Kellogg’s Australia finalises acquisition of Specialty Cereals, enters natural food sector
Kellogg Company, the world’s leading producer of cereal, today announced that it has acquired NSW-based Specialty Cereals Pty Limited – a privately-owned manufacturer of natural ready-to-eat cereals. Founded in 1988, Specialty Cereals markets products under the Vogels, Wild Oats, and Cerevite brands.
Terms of the transaction were not disclosed, but Kellogg reports that the transaction will have no material impact on their 2008 operating profit.
David Mackay, President and Chief Executive Officer of the Kellogg Company, reported that the purchase was made to present them with an entry point into the booming natural foods sector. “Consistent with our strategy, we continue to pursue the right kind of opportunities to grow our business,” he said. “The acquisition of Specialty Cereals provides Kellogg Australia with an entry into the fast-growing Natural Foods segment.”
“The acquisition cements a 20-year relationship between our companies, as Specialty Cereals was already a co-manufacturer and co-packer for Kellogg,” added David Denholm, President Kellogg Asia Pacific. “Their brands are a great fit with the Kellogg Australia portfolio and we’re thrilled to welcome their employees to the Kellogg family.”
The acquisition adds a small manufacturing facility to the Kellogg Company’s Australian manufacturing network, with 51 employees. The business will continue to be headquartered in Frenchs Forest, Sydney, and will report into Kellogg Company’s Asia Pacific business unit.