MDLZ Mondelez International Inc

   By Micah Maidenberg 
 

Mondelez International Inc. said it will buy a majority stake in a company that bakes mini-treats including brownies and cupcakes and sells gingerbread house decorating kits.

The snack maker Tuesday said it signed a deal to take what it called a significant majority interest in Give & Go, which generated about $500 million in revenue last year and focuses on selling products in bakeries at various stores.

Mondelez has staked its business on both savory and sweet snacking products, seeking to tether itself to a long-running consumer shift toward more snacking. The company has grown its sales on an organic basis faster than some other large food companies, which are also pushing to develop their snacks businesses.

Known for producing brands like Oreo cookies and Triscuit crackers, Mondelez has pursued deals for smaller snack companies with the aim of building up the acquired businesses over time.

"We like bolt-on acquisitions," finance chief Luca Zaramella said last week at an investor conference. "It doesn't have to be a big bang one way or the other. It can be gradual."

The company has also purchased cookie-maker Tate's Bake Shop and last year bought a majority interest in a company that makes refrigerated snack bars.

A Mondelez spokesman declined to comment on how much the company agreed to pay for the Give & Go stake.

Funds associated with private-equity firm Thomas H. Lee Partners L.P. will sell the stake to Mondelez. Give & Go's management team will retain a minority interest in the company, Mondelez said.

Give & Go's brands include Two-Bite, which offers brownies, cinnamon rolls and other sweet treats. Its Create-A-Treat brand sells gingerbread house kits and other items.

The deal is expected to be completed in the second quarter.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

February 25, 2020 09:07 ET (14:07 GMT)

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