Kraft Foods to take full control of Moroccan cookie firm Bimo

US-based Kraft Foods has entered into an agreement to gain full control of Morocco’s leading cookie firm Bimo from Societe Nationale d’Investissement (SNI), an investment vehicle owned by Morocco’s royal family, for MAD1.31bn ($151m).

Under the agreement, SNI will sell its 50% stake in Bimo, which will boost Kraft Foods’ stake in the cookie company to 100%.

The deal is part of Kraft Foods’ plan to strengthen its presence in developing markets.

Bimo, established in 1981, has two production facilities and produces cookies, sandwich biscuits, wafers, pastries and salted crackers.

The company, which employs 1,400 people, reported sales of MAD831m ($95.67m) in fiscal 2011.

Bimo accounts for 13% of cookie sales in Morocco; however, its market share has been declining over the past few years due to increased local competition and free trade agreements, primarily with Turkey and the European Union.

SNI plans to use the proceeds of the sale to lower debt and fund investment in its affiliates, reports Reuters, citing a source.

The transaction is subject to regulatory approvals, and is expected to be completed within six months.

The deal marks Kraft Foods’ second agreement in 2012 – in August, it agreed to sell a majority stake in the Back to Nature food brand, which produces cookies, crackers and trail mixes, to private equity firm Brynwood Partners for an undisclosed amount.

Kraft Foods is currently in the process of splitting into a snacks company and a business focused on North American grocery products – it plans to spin off its grocery business on 1 October 2012.

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Image: Kraft Foods plans to strengthen its presence in the Moroccan market with Bimo takeover. Photo: Bearas.