Mondelez International Inc. (NASDAQ: MDLZ) has announced an agreement to purchase leading US nutrition energy bars manufacturer Clif Bar & Company for $2.9 billion-plus extra contingent earnout consideration.
Mondelez continues its global expansion with more acquisitions
Mondelez International’s worldwide snack bar operations, which include its US-based supplementary and top refrigerated snacking enterprise Perfect Snacks and UK-based nutrition business Grenade, have grown to over $1 billion due to the purchase of top on-trend brands LUNA, CLIF, and CLIF Kid. This purchase also promotes the firm’s long-term growth plan of reshaping its portfolio.
CEO of Mondelez International Drik Van de Put said:
We are thrilled to welcome Clif Bar & Company’s iconic brands and passionate employees into the Mondelēz International family. 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.
Clif Bar & Company represents Mondelez’s aim to ’empower individuals to snack correctly’ as a champion and innovator in sustainable and well-being snacking in the United States. The company looks forward to continuing the critical work with the dedicated staff of Clif.
The deal will likely be top-line accretive from year two and provide cost savings by leveraging Mondelez International’s worldwide and North American reach to increase Clif’s sales network and gain additional traction in new and existing clients and channels in the United States.
Deal to help Clif Bar & Company grow in its next phase
Clif Bar & Company CEO Sally Grimes said:
Mondelēz International is the right partner at the right time to support Clif in our next chapter of growth. Our purposes and cultures are aligned and being part of a glob. al snacking company with broad product offerings can help us accelerate our growth while staying true to our deeply ingrained Five Aspirations.
Mondelez International shall continue running the Clif Bar & Company enterprise from Emeryville, CA headquarters by cultivating the brand’s spirit of entrepreneurship and upholding its authenticity and purpose. Additionally, the business will keep producing its goods in Twin Falls, Idaho, and Indianapolis, Indiana.
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