Kellogg completes Keebler acquisition - Keebler Foods - Brief Article - Statistical Data Included

Eurofood, March 29, 2001

US cereal maker Kellogg has completed its purchase of compatriot biscuit manufacturer Keebler Foods, giving the Kellogg a boost as it looks to diversify its activities away from cereals.

The US$3.6bn (4bn [European Dollar]) deal, which included US$800m of debt, was agreed in October last year (see Eurofood, 9 November 2000, p2) will immediately affect Kellogg, as it gains a highly effective direct-store-delivery system form Keebler. Products are taken directly from warehouse to store shelves, and Kellogg will now use this system for its current snacks such as the NutriGrain range of bars, as well as newly acquired snacks.

The other side of the deal has also seen Keebler's former parents, Flowers Industries create a new firm. Having sold its 55% stake in Keebler, remaining Flowers food businesses were spun off creating Flowers Foods, which includes both Flowers Bakeries and Mrs. Smith's Bakeries.