Kellogg acquires Zhenghang Food Co. in China

China - Kellogg has acquired a cookies and crackers manufacturer in China, expanding Kellogg's presence in the country.

One of Kellogg Company's majority-owned subsidiaries has acquired all of Zhenghang Food Company's assets, a cookies and crackers manufacturer also known as Navigable Foods.

Along with it, two manufacturing facilities located in Yishui county, Shandong province and Fushun, Liaoning province  will be acquired, as well as the company's sales and distribution network.

The company's headquarters in the city of Qingdao, Shandong province will remain and will report to Kellogg's Asia Pacific business unit.

The terms of the transaction were not disclosed.

"Geographic expansion in high-growth markets like China will help Kellogg Company continue to deliver sustainable growth," said David Mackay, president and chief executive officer, Kellogg Company. He added that Navigable Foods' biscuit products will develop Kellogg's presence in China.

Kellogg Company is the first Fortune 500 MNC to invest in Yishui county, where Navigable Foods' main plant is situated. Navigable Foods' 2007 net sales were approximately US$50 million.