EGYPT - Kellanova, a leading player in the global snacks industry, has announced the sale of its majority stake in Egyptian biscuit manufacturer Bisco-Misr to the United Arab Emirates-based conglomerate, Hayel Saeed Anam Group (HSA). 

The transaction, which is expected to be finalized by the first quarter of 2025, awaits regulatory approvals and the completion of a mandatory tender offer for minority shares. The financial terms of the deal have not been disclosed.

Bisco-Misr, established in 1957, is Egypt’s leading biscuit manufacturer, producing popular brands such as Bisco Tea, Nice, Maamoul, and Bisco Wafers. 

The company operates manufacturing plants in Cairo and Alexandria, solidifying its position as a key player in the region's snack industry. Kellanova had acquired a majority stake in Bisco-Misr in 2015 for US$125 million as part of its strategy to expand into the Middle East.

HSA Group, a business conglomerate with operations spanning more than 80 markets across South Asia, Europe, the Middle East, and Africa, brings substantial expertise in the biscuit industry. 

The group, which employs around 35,000 people, has a strong foothold in the food industry, notably through its ARMA Group in Egypt and National Biscuits and Confectionery Company in Saudi Arabia.

Muneer Hayel Saeed, a board member of HSA Group, highlighted the potential for growth that this acquisition presents. 

“We firmly believe that our agreement today will help open a remarkable growth for Bisco-Misr, a highly valued and iconic brand in Egypt,” he stated. “Bisco-Misr’s deep-rooted legacy and reputation perfectly align with our vision. We are committed to continuing to grow our investments in Egypt and tapping into the immense potential of this market.”

Kellanova, while divesting its majority stake, reaffirmed its commitment to the Egyptian market. 

Robert Chanmugam, Managing Director for the Middle East, North Africa, Turkey, and Sub-Saharan Africa at Kellanova, described the deal as a strategic step. 

“Egypt is an important and strategic market for Kellanova with long-term growth opportunities. We will continue to invest to grow our business, develop local talent, and bring innovations to the marketplace across our diverse portfolio of cereals, snacks, and noodles products,” Chanmugam added.

This transaction comes just weeks after Kellanova’s larger corporate moves, including its acquisition by Mars in a US$36 billion deal. The sale of Bisco-Misr to HSA Group is expected to help the latter strengthen its presence in the MENA region and drive the internationalization of Bisco-Misr’s well-known brands.