Kellogg Acquires Chinese Biscuit Maker

BATTLE CREEK — Kellogg Co. announced today that one of its majority-owned subsidiaries has acquired substantially all the assets of Zhenghang Food Co. Ltd. a manufacturer of cookies and crackers in the north and north eastern regions of China. Kellogg did not disclose terms of the transaction.

Navigable Foods is one of China’s major biscuit manufacturers. Its 2007 net sales were approximately $50 million. Navigable’s 1,800 employees, including the company’s management team, will join the Kellogg subsidiary. The acquisition includes two manufacturing facilities in Yishui county, Shandong province and Fushun City, Liaoning province, as well as the company’s sales and distribution network. The business will continue to be headquartered in the city of Qingdao, Shandong province and will report to Kellogg’s Asia Pacific business unit.

“Geographic expansion in high-growth markets like China will help Kellogg Co. continue to deliver sustainable growth,” remarked President and CEO David Mackay. “Nevigable Foods’ biscuit products are a strong, strategic fit within the Kellogg portfolio and will further build our presence in China.”