Mondelēz International to snap up energy bar maker Clif Bar
21 Jun 2022 --- Mondelēz International has made moves to acquire Clif Bar & Company, a US-based maker of energy bars, for US$2.9 billion with additional financial incentives – contingent on earnout considerations.
The acquisition of brands Clif, Luna and Clif Kid expands Mondelēz International’s global snack bar business, which includes the previous acquisitions of refrigerated snacking business Perfect Snacks in the US and performance nutrition business Grenade in the UK.
“This transaction further advances our ambition to lead the future of snacking by winning in chocolate, biscuits and baked snacks as we continue to scale our high-growth snack bar business,” says Dirk Van de Put, chairman and CEO of Mondelēz.
The transaction is expected to be top-line accretive in year two and create cost synergies by using Mondelēz’s global and North American scale to expand Clif’s sales distribution. Gaining further penetration in existing and new customers and channels in the US.
Mondelēz will continue to operate the Clif Bar & Company business from its headquarters in Emeryville, California.
The company will also continue to manufacture its products in its facilities in Twin Falls, Idaho and Indianapolis, Indiana.
“Mondelēz International is the right partner at the right time to support Clif in our next chapter of growth,” adds Sally Grimes, CEO, Clif Bar & Company.
“Our purposes and cultures are aligned, and being part of a global snacking company with broad product offerings can help us accelerate our growth while staying true to our deeply ingrained Five Aspirations – sustaining our people, planet, community, business and brands – five bottom lines that have grounded our company since its founding and will remain our North Star going forward.”
The acquisition is subject to customary closing conditions and a pre-closing F reorganization and conversion to a limited liability company by Clif Bar & Company.
The transaction is expected to close in Q3 following customary regulatory review.
Big moves in snacking
Following a strategic review last year, last month, Mondelēz International moved to sell its developed chewing gum business – which includes brands Trident and Dentyne – to take a bigger bite of the chocolate and biscuits markets.
This is in addition to offloading its Halls cough drop brand, as the food giant focuses on generating 90% of revenue in its chocolates and biscuits businesses, including baked snacks.
“The acquisition of Clif Bar & Company will build on Mondelēz’s continued prioritization of fast-growing snacking segments in key geographies,” the snack titan states.
So far in 2022, Mondelēz has announced an agreement to acquire Ricolino – Mexico’s leading confectionery company – from Grupo Bimbo for US$1.3 billion. It also closed on its acquisition of Chipita, a leader in the Central and Eastern European snack-size cakes and pastries category.
This follows including the acquisitions of Gourmet Food Holdings, a leading Australian food company in the attractive premium biscuit and cracker category; and Hu, a well-being snacking company in the US.
Among other recent moves, the company invested US$23 million in expanding its Oreo biscuit production line in Cikarang, Indonesia, in February.
Edited by Benjamin Ferrer
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