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