Mondelez to buy Grupo Bimbo's snack business Ricolino for US$1.3B
26 Apr 2022 --- Mondelēz International has entered into an agreement with Grupo Bimbo to acquire its confectionery business, Ricolino, for approximately US$1.3 billion. Ricolino is a growing business with a leading confectionery position in Mexico.
The transaction, which is subject to customary closing conditions, will be funded through an issuance of debt and cash on hand and is expected to close in late Q3 or early Q4, 2022. It is anticipated to help boost Mondelēz International’s business in the high-priority Mexico market to accelerate growth and scale in core snacking categories.
With approximately US$500 million in annual revenue, Ricolino employs close to 6,000 associates, has four manufacturing facilities and distributes its products to several channels, including traditional trade, supermarkets, convenience stores and others.
Its brands Ricolino, Vero, La Corona and Coronado are leaders in lollipops, marshmallows, chocolates, gummies and other confectionery products.
“This acquisition will provide a step change for our business in Mexico, an important growth market for us, more than tripling our routes to market and growing our position in core snacking categories,” comments Dirk Van de Put, chairman and CEO of Mondelēz International.
Doubling Mondelēz’s Mexico business
The acquisition is expected to double the size of Mondelēz Mexico’s business and provide an entry point into the chocolate category, while expanding the company’s presence in snacking.
Many of Ricolino’s chocolate and candy brands have more than 50 years’ history in Mexico. Today, the company’s more than 2,100 direct store delivery routes reach 440,000 traditional trade outlets.
Meanwhile, for Grupo Bimbo, a baking specialist, this transaction will enable focus on its grain-based baking and snacks businesses.
“We ventured into the confectionery industry with the establishment of Ricolino in 1970; today, after 52 years of growth and progress, it is the industry leader in Mexico,” says Daniel Servitje, chairman and CEO of Grupo Bimbo.
“I’m confident that Mondelēz International will leverage these amazing brands to a much higher position.”
Earlier in January, Mondelēz International closed on its acquisition of Chipita, a prominent player in the Central and Eastern European snack-size cakes and pastries category.
This followed a year of growth in 2021 supported by the acquisition of Grenade, a leading UK performance nutrition company; Gourmet Food Holdings, an Australian food company in the premium biscuit and cracker category; and Hu, a well-being snacking company in the UK.
Edited by Benjamin Ferrer
