Kellogg's Specialty

September 18/Battle Creek, Mich./Canada NewsWire -- Kellogg Company acquired Specialty Cereals Pty Limited, a privately owned manufacturer of natural ready-to-eat cereals based in Frenchs Forest, Sydney, Australia. Founded in 1988, Specialty Cereals markets products under the Vogels, Wild Oats and Cerevite brands.

Terms of the transaction were not disclosed. With Specialty Cereals' net sales of approximately $17 million for the 2007/2008 Australian financial year, the transaction is not expected to have a material impact on Kellogg Company's 2008 operating profit.

"Consistent with our strategy, we continue to pursue the right kind of opportunities to grow our business," said David Mackay, president and chief executive officer, Kellogg Company. "The acquisition of Specialty Cereals provides Kellogg Australia with an entry into the fast-growing Natural Foods segment."

"The acquisition cements a 20-year relationship between our companies, as Specialty Cereals was already a co-manufacturer and co-packer for Kellogg," added David Denholm, president Kellogg Asia Pacific. "Their brands are a great fit with the Kellogg Australia portfolio, and we're thrilled to welcome their employees to the Kellogg family."

The acquisition adds a small manufacturing facility to the Kellogg Company's Australian manufacturing network, with 51 employees. The business will continue to be headquartered in Frenchs Forest, Sydney, and will report into Kellogg Company's Asia Pacific business unit.

Kellogg will leverage its brand-building and innovation expertise, its understanding of the cereal category, and Specialty Cereals' leadership in the Australian natural foods segment to drive continued strong growth of this business.

From the September 29, 2008, Prepared Foods e-Flash

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