Mondelez snaps up Greek croissant and baked snacks major for $2bn

By Gill Hyslop contact

- Last updated on GMT

Chipita's 7Days brand comprises a range of single serve and mini croissants, biscuits, cakes, savoury Bake Rolls, Pizzeti and Fruit & Nuts. Pic: Chipita
Chipita's 7Days brand comprises a range of single serve and mini croissants, biscuits, cakes, savoury Bake Rolls, Pizzeti and Fruit & Nuts. Pic: Chipita

Related tags: Mondelez International, Chipita, Hu Master Holdings

The latest conquest in Mondelez International’s aggressive acquisition journey is Chipita S.A., an Athens-headquartered food conglomerate that primarily caters to the central and eastern European markets, but also sells its products in more than 50 countries around the world.

Mondelez – which posted total revenues of $26.6bn in 2020 – is shelling out $2bn for Chipita, following its ‘proven track record of consistent growth’. Last year, its extensive bakery and snacks portolio - croissants, pastries, cakes, biscuits, pizzeti, potato chips, extruded snacks and jams - brought in around $580m in revenue.

The acquisition gains Mondelez an additional 13 production facilities in Europe, along with a 5,100-strong workforce. It also expands its own portfolio to include Chipita’s key brands such as 7Days, Chipicao, and Fineti.

Ramping up global presence

The deal is the Chicago-based Oreo maker’s fourth announced this year and its third international acquisition.

In January, Mondelez announced it had acquired 100% of New York City-based healthy snacks maker Hu​. This was followed with the purchase of Australian biscuit and cracker maker Gourmet Food Holdings​ in March, and by the bolt-on of UK-based protein bar maker Grenade​ for £200m a mere two weeks later.

Last year, Mondelez agreed to buy Give & Go Prepared Foods Corp, a Canadian maker of two-bite brownies,​ for $1.2bn.

Mondelez will fund the acquisition with a combination of new debt and cash on hand. It expects the purchase to immediately contribute to profit growth.

In its 2021 first-quarter earnings release in April, the company said it forecasted 2021 full-year organic revenue growth of approximately 3%, compared to 2020.

Rothschild & Co. advised Chipita on the deal.

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