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K

Kellogg

$76.46

0.41 (0.54%)

06:40
10/13/16
10/13
06:40
10/13/16
06:40

Kellogg agrees to acquire Ritmo Investimentos for $429M in cash

Kellogg announced it has entered into an agreement to acquire Ritmo Investimentos, controlling shareholder of Parati S/A, Afical Ltda and Padua Ltda, a Brazilian food group. The acquisition, the company's largest in Latin America, furthers two of Kellogg's strategic priorities -- becoming a global snacking powerhouse and expanding its presence in emerging markets. Parati Group Net Sales are expected to be approximately $190M at current exchange rates. The acquisition by Kellogg, through its subsidiary Pringles Servicos e Comercio de Alimentos Ltda, is subject to customary closing conditions and is expected to close in late 2016. The purchase price is about $429M at current exchange rates, and it will be an all-cash transaction. To preserve financial flexibility, Kellogg intends to reduce its expected share repurchases in 2016 to $450M-$550M, versus previous guidance of $700M-$750M. The profitability of this business, along with expected revenue and cost synergies, should create financial value for shareowners relatively quickly, even accounting for an initially reduced level of share repurchases. In 2016 and 2017, it is expected to be neutral to Comparable-basis EPS, depending on exchange rates, with only a slight impact on Reported EPS because of one-time costs of (1c) per-share in both years. The acquisition is expected to be accretive on both Comparable and Reported EPS in 2018 and thereafter.

K Kellogg
$76.46

0.41 (0.54%)

05/12/16
SBSH
05/12/16
NO CHANGE
Target $90
SBSH
Buy
Citi calls Kellogg 'prime' takeout candidate, sees $120/share price
Citi analyst David Driscoll reiterates Kellogg (K) as his top pick in packaged foods after hosting meetings with management. The opportunity for margin led earnings improvement at Kellogg "is massive," Driscoll tells investors in a research note. The company is also a "prime" takeout candidate, the analyst contends. He views Kellogg, General Mills (GIS) and Mondelez (MDLZ) as likely buyout candidates and has a $120 per share takeout value for Kellogg. The stock closed yesterday down 19c to $76.18. Driscoll has a Buy rating on the cereal maker with a $90 price target.
06/15/16
SBSH
06/15/16
NO CHANGE
Target $102
SBSH
Buy
Citi calls Hershey takeover an 'unlikely event'
Hershey (HSY) shares traded higher last week amid chatter of an unsubstantiated report regarding a potential takeover of the company by Nestle (NSRGY), Citi analyst David Driscoll tells investors in a research note. Unique company-specific factors, mainly the control of the Hershey Trust and Pennsylvania law, make a takeover of Hershey by any company an "unlikely event," Driscoll contends. "The multitude of stakeholders involved would have to be perfectly aligned for any potential transaction, which to us seems like a large challenge to overcome," he writes. The analyst sees others in the Food Manufacturers space, namely Kellogg (K), General Mills (GIS) and Mondelez (MDLZ), as more likely takeover targets. Driscoll keeps a Buy rating on Hershey with a $102 price target. The chocolate maker closed yesterday up 95c to $96.58. The Fly on June 9 attributed the intraday move higher in Hershey shares to takeover speculation.
08/05/16
SBSH
08/05/16
NO CHANGE
Target $100
SBSH
Buy
Kellogg price target raised to $100 from $90 at Citi
Citi analyst David Driscoll raised his price target for Kellogg to $100 saying the company announced "major upgrades" to its cost savings and operating margin targets when reporting Q2. The analyst sees "significant" margin opportunities for Kellogg and reiterates a Buy rating on the shares.
09/27/16
FBCO
09/27/16
NO CHANGE
FBCO
Kellogg removed from US Focus List at Credit Suisse

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