Battle Creek, Michigan-headquartered cereals colossus Kellogg Company has announced its intention to acquire cookie and crackers manufacturer Keebler Foods of Elmhurst, Illinois.
The deal, at $42 per share, is worth in the region of $3.6 billion, and will create a merged company with around $10 billion in annual sales.
Credit Suisse First Boston analyst Dave Nelson believes Kellogg will benefit from Keebler's strong branding skills, especially in the commodity-oriented cereals sector. The deal is expected to finalize in Q1 of 2001.
There is little concern at the possibility of a move in either ad account as the agency for both companies is Chicago’s Leo Burnett USA, with whom Keebler spent some $20m in measured media last year.
News source: Advertising Age - Daily Deadline