Wed, Aug. 19, 11:38 AM
- Large food companies need to focus on bold M&A and innovation actions over recharging iconic brands, concludes Rabobank in a new report on the sector.
- A shift in consumer preferences has sparked a need to introduce new brands which are on trend - instead of focusing on "innovation-lite" and product reformulation strategies. Buying promising brands at an earlier stage than normal is seen as a forward-thinking strategy.
- Related stocks: KHC, MDLZ, PEP, KO, OTCPK:NSRGY, OTCPK:NSRGF, WWAV, HAIN, K, GIS, POST, CPB, PF, THS.
Mon, Mar. 2, 7:54 AM
- RBC Capital Markets thinks Mondelez International (NASDAQ:MDLZ), Kellogg (NYSE:K), or Kraft Foods (NASDAQ:KRFT) would make a logical acquisition for Berkshire Hathaway after reading Warren Buffett's annual shareholder letter.
- Buffett was very active in the food sector previously as a backer of 3G in the acquisitions of Heinz and in the Tim Hortons-Burger King combination.
- Previously: Buffett, Munger talk succession and more in annual letters (Feb. 28 2015)
- Previously: Buffett talks to CNBC after annual letter
Mon, Jan. 12, 3:23 AM
- After private equity firm Abraaj pulled its offer for Bisco Misr on Dec. 31, the bidding period for the Egyptian biscuitmaker ended Sunday with Kellogg (NYSE:K) as the only suitor.
- The bidding war between the two drove up the offer price by over 20%.
- As of yesterday, shareholders controlling 86% of the company have agreed to sell their shares to Kellogg for a total of $125M.
Dec. 31, 2014, 2:59 AM
- The UAE's Abraaj Investment Management is pulling out of a bidding war with Kellogg (NYSE:K) for the Egypt's Bisco Misr.
- Abraaj did not give a reason for its withdrawal from the bidding process, but said the orderly and transparent process had underlined growing investor interest in Egypt.
- Kellogg was the last to place a bid for the snack maker, offering 89.86 EGP per share - for a total purchase price of $144M.
Dec. 28, 2014, 11:01 AM
- Egypt's financial regulator has extended the bidding period for Bisco Misr until Jan. 11, intensifying a $144M takeover battle between Kellogg (NYSE:K) and the UAE's Abraaj Investment Management.
- Kellogg raised its bid for the Egyptian snack maker on Wednesday to 89.86 EGP per share following an earlier offer of 88.09 from Abraaj.
- The battle has so far driven up the bid price by more than a fifth from Abraaj's opening gambit of 73.91 EGP/share.
Dec. 18, 2014, 4:35 AM
Nov. 30, 2014, 9:23 AM
- Intensifying a bidding war with the UAE's Abraaj Investment Management, Kellogg (NYSE:K) has raised its offer for Egyptian cake and biscuit maker Bisco Misr again.
- The world's biggest breakfast cereal maker upped its bid to 82.2 EGP ($11.50) per share today, topping Abraaj's previous offer of 80.58 EGP ($11.27).
- Earlier this month, Abraaj offered 73 EGP per share, which Kellogg countered last week with 79 EGP.
- Previously: Bisco Misr bidding war heats up
Nov. 26, 2014, 9:44 AM
- Abraaj has raised its bid for Bisco Misr to 80.58 EGP per share, announcing a $130M offer for the Egyptian cake and biscuit maker.
- The UAE investment company's initial bid of 73 EGP per share earlier this month was topped this morning by Kellogg's (K -0.5%) offer of 79 EGP/share.
- Previously: Kellogg makes offer for Egypt's Bisco Misr
Nov. 26, 2014, 6:40 AM
Nov. 20, 2014, 6:55 AM
Oct. 2, 2014, 6:55 PM
- Kellogg (NYSE:K) CEO John A. Bryant is planning to meet in London with British snack/cookie maker United Biscuits about a ~£2B ($3.2B) acquisition, the WSJ reports.
- At the same time, United is said to be prepping IPO documents, thus giving P-E owners Blackstone and PAI Partners a second exit strategy. Blackstone and PAI bought United for £1.6B in 2006.
- United had 2013 sales of £1.1B, and claims a quarter of the British cookie market. However, growth has been weak in recent years.
- K -0.4% AH.
Sep. 22, 2014, 3:00 PM
- Kellogg (K -0.6%) is one of the first round bidders for United Biscuits, sources tell The Wall Street Journal.
- The Ontario Teachers' Pension Plan and Turkish firm Ulker Biskuvi Sanayi AS were also involved in the bidding for the private equity-owned food company.
- The offer prices for United Biscuits is reported to be in the neighborhood of $3.27B.
Aug. 6, 2014, 3:24 PM
- Kellogg (K +2.5%) is considering an offer for United Biscuits in the £2B range ($3.37B), according to reports from the U.K.
- Sources indicate the company is working with Barclays on how to structure an offer.
- The acquisition could give Kellogg new growth channels.
- United Biscuits is held by P-E firms Blackstone Group and PAI Partners.
Jun. 3, 2014, 3:28 PM
- A takeover of Kellogg (K -0.1%) is no easy feat after shares rose 8% over the last month on merger buzz, notes The New York Times.
- The company carries around $7.4B in debt which limits the attraction of a straight leveraged buyout.
- If a buyer wants to snap up the consumer products company it might have to utilize the same strategy that Warren Buffett did with his Heinz acquisition in lining up a P-E partner with a patient long-term vision.
May 27, 2014, 7:28 AM
- A $6.4B offer by Pilgrim Pride's (PPC) to buy Hillshire Brands (HSH) could rattle the food sector.
- For starters, the deal could spoil Hillshire's offer on the table to buy Pinnacle Foods (PF).
- The quick analyst take on a PPC-HSH combination is favorable with the companies focused in different areas (chicken vs. packaged meat) which could lead to easy access to new distribution channels.
- Premarket: HSH +22.9% to $45.49, PF -5.3% to $31.50.
- Also on merger watch in the food sector: THS, SJM, GIS, KRFT, CPB, ADM, BGS, RAH, HAIN, K CAG
May 12, 2014, 7:13 AM
- A merger between Hillshire Brands and Pinnacle Foods could kickstart the consolidation frenzy in the food industry analysts have been forecasting.
- The sector has been tapped to see a high rate of mergers and buyouts due to the significant synergies that could be unleashed through combinations.
- On watch: THS, SJM, GIS, KRFT, CPB, ADM, BGS, RAH, HAIN, K, CAG
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