Kellogg’s to acquire Brazilian food company Parati

US-based Kellogg Company has entered an agreement with Ritmo Investimentos to acquire controlling stake in Parati, Afical and Pádua (Parati Group), a Brazilian food group.

The US firm will be acquiring the Brazilian food company for R$1.38bn ($429m), which will be an all-cash transaction.

By acquiring the controlling stake in Parati, Kellogg’s expects to strengthen its presence in the global market.

Kellogg Company chairman and CEO John Bryant said: “Brazil is the largest economy in Latin America and this acquisition will allow us to accelerate our growth and improve our margins in the region. This means more growth for the core Parati Group business and our well-loved Kellogg brands.”

Parati Group offers an array of regional brands, which includes Parati, Pádua, Minueto, Zoo Cartoon and Hot Cracker biscuits.

It also offers Trink powdered beverages, Parati Lamen instant noodles and Parati dried pasta.

The Parati Group has a workforce of approximately 3,200 employees. The company also has five distribution centers and two production facilities.

Kellogg Latin America president Maria Fernanda Mejia said: “The combination of Parati’s portfolio and sales and distribution capabilities with Kellogg’s global resources, including innovation expertise, extensive shopper insights and customer marketing strength, provides tremendous opportunity. Bringing our companies together enables us to expand our footprint in a rapidly growing market.”

The acquisition by Kellogg’s, through its subsidiary Pringles Serviços e Comércio de Alimentos, is subject to customary closing conditions and is expected to close in late-2016.