Merger and Acquisition of Kraft Food

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1- Kraft Foods is the largest U.S. manufacturer and marketer of food products, with a combination of the world's largest cheese brand "Kraft" and the world's largest cookie and cracker business "Nabisco". Recently, and exactly on February 2010, Kraft Food has proposed the acquisition of Cadbury Plc (CBY) as the company's strategic act to constitute a global powerhouse in snacks, quick meals, and confectionery. Kraft Food acquired Cadbury Plc for almost $19.5 billion. The new Kraft Foods achieves more than half of its sales in the international markets and more than 25% in emerging markets. Kraft Foods has turned into the number one worldwide player in chocolate and confectionery and snacks units accounting for 51% of group sales, which is an increase compared to the previous one that was 37%. These two groups are less commercial and expand faster than Kraft foods' other segments. KFT first quarter of 2011 shows an operating EPS of 52 cents per share. The benefit of these increased investments is thanks to the strong productivity, power brands, and disciplined cash management. More than that, KFT has been making good progress in capturing the synergies from the Cadbury acquisition. 2- Revenues in this quarter raised 11.1% to $12.5 billion, at the same time organic growth was 4.6% directed by a solid top line growth in all regions. Pricing accounted for 3.7 percentage points of growth and volume and mix contributed 0.9 percentage points. However, Easter-related shipments partially offset the growth by 1.5 percentage points. Revenue grew with the developing markets leading the race in each of the geographies with an increase in revenue of 24%. This was followed by an increase of 11.3% in Europe and 4.4% in North America. As on December 31, 2010, Kraft Foods had $2.09 million of cash and cash equivalents compared with $2.48 million at the end of year 2010.

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