While the company is there, they will also pay a cool $450 million for a 50% stake in a food sales and distributing company that is owned by Tolaram, called Multipro.

The Kellogg agreement with Tolaram Africa gives Kellogg the option to acquire a stake in Tolaram Africa Foods, which owns 49 percent of Dufil Prima, in the future.

John Bryant the CEO at Kellogg said to investors that the African region was experiencing explosive growth, as there are almost 1 billion people and an economy, which is expected to double over the upcoming decade.

Tolaram Africa said Bryant has built a very highly successful business of consumer products and today is one of the largest Nigerian food companies.

Kellogg (K – Get Report) stock closed higher by 1.09% to $67.46 on Tuesday afternoon, following the company’s announcement that it will create a joint venture with Tolaram Africa Foods to increase its presence in the African market.

Kellogg will fund its latest acquisition using global cash and an increase in commercial paper financing of $350 million, the company said.

Multipro is establishing other networks in other key countries in Africa such as Ivory Coast, Democratic Republic of Congo, Ethiopia and Cameroon. “This is another significant step towards providing affordable and wholesome nutrition for our expanding consumer base”.

“We rate KELLOGG CO (K) a BUY”. Excluding transaction costs, reported EPS will not be affected in 2015 and 2016.

Costs associated with the deal will reduce earnings per share by one cent in the third quarter of 2015, the company said. Kellogg expects slight earnings accretion in 2017. The impact will be excluded for comparable earnings per share.