KELLOGG ENTERS THE COOKIES AND CRACKER INDUSTRY
By Adnews Staff
Cereal and convenience foods company Kellogg, based in Battle Creek, Michigan, announced Thursday it is acquiring cookie and cracker maker Keebler Foods Company, based in Elmhurst, Illinois. Kellogg will pay $42 for each Keebler share as well as assume Keebler's $500-$600 million debt in the deal, valued at approximately $4.4 billion. The acquisition will see the combination of Kellogg's Special K, Rich Krispies, Eggo, Pop-Tart and Nutri-Grain brands with Keebler's Cheez-It, Famous Amos, Murray, Austin and Plantation brands. The deal will also combine Kellogg's advertising brand icons such as Tony the Tiger and Snap! Crackle! and Pop with Keebler's Keebler Elves spokescharacters. The deal is part of Kellogg's growth strategy, the company said, and creates a diversified food company with $10 billion in annual sales. The acquisition is subject to customary regulatory approvals and is expected to close during the first quarter of next year.