AM Kellogg Co. (K), cereal and convenience foods manufacturer, announced on Thursday that it acquired Russian biscuit and cereal maker United Bakers Group, the terms of the deal were not disclosed.
United Bakers is a leading producer of cereals and biscuits in Russia, its brands include Yantar and Lyubyatovo, It had about $100 million in sales last year.

The deal includes United Bakers’ six Russian manufacturing plants located throughout Russia and its sales and distribution network, and it’s the headquarters will remain in Voronezh, Russia. The company will stay in Voronezh, Russia, reporting to Kellogg’s European division. United Bakers’ management team and 4,000 strong employees of United Bakers’ would join Kellogg and it’s the headquarters will remain in Voronezh, Russia. United Bakers’ will report into Kellogg Company’s European business unit.

The general director of United BakersYevgeny Okulich-Kazarin, called Thursday’s deal a reward for the company’s hard work. “This is an opportunity for United Bakers to further grow the business,” Okulich-Kazarin said in his statement.

Kellogg chief David Mackay described the acquisition as “an exciting strategic development for Kellogg.
“The acquisition of United Bakers in Russia is an exciting strategic development for Kellogg. United Bakers is a leading producer of high quality cereals and biscuits, and its existing operations will help us establish a considerable presence in this large and fast-growing market.”
With 2006 sales of nearly $11 billion, Kellogg Company is the world’s leading maker of cereal and a leading producer of convenience foods. Kellogg stock finished Wednesday’s regular trading session at $49.60, down $0.03 on a volume of 2.634 million shares.