Mondelēz International Acquires High-Growth European Snacking Company, Chipita S.A.
May 26 2021 - 9:11AM
Mondelēz International, Inc. (Nasdaq: MDLZ) today announced an
agreement to acquire Chipita S.A., a high-growth key player in the
Central and Eastern European croissants and baked snacks category.
First established in Greece over 40 years ago,
Chipita S.A. generated approximately $580 million of revenue in
2020 and has a proven track record of consistent growth from its
portfolio of croissant and baked snack brands, including 7Days,
Chipicao, and Fineti. Chipita S.A. has been at the forefront of the
development and growth in the sector across multiple countries
driven by its strong innovation and manufacturing capabilities.
“Welcoming Chipita S.A.’s delicious pastry
products into the Mondelēz International family advances our
strategy to become the global leader in broader snacking,” said
Dirk Van de Put, Chairman & CEO of Mondelēz International.
“Their iconic brands and significant scale across so many
attractive geographies make them a strong strategic complement to
our existing portfolio and future growth ambitions in Europe and
beyond.”
Chipita S.A.’s products, produced in 13
manufacturing plants, and delivered in more than 50 countries,
reach two billion consumers. The acquisition will enable the
Mondelēz International business to offer a broad bakery portfolio -
biscuits, cake and now pastry - meeting growing consumer demand for
this segment.
Chipita S.A.’s Chief Executive Officer, Spyros
Theodoropoulos, said: “Chipita, for more than 40 years, based on
quality and innovation created a new category of snacks loved by
consumers internationally. I am certain that the acquisition of
Chipita by Mondelēz International, one of the world’s leading
snacking companies, will create new prospects for its people and
products.”
In addition to bringing a new category to
Mondelēz International, the acquisition will also offer
significantly increased presence in the fast-growing Central and
Eastern European markets where Chipita S.A.’s business is
especially well positioned.
Mondelēz International will utilize Chipita
S.A.’s Central and Eastern European distribution network
capabilities to enhance its own distribution in the region and
continue to bring the brands to new countries in the region and
beyond. The deal will also offer innovation and co-branding
opportunities by bringing Mondelēz International’s iconic chocolate
brands to new categories.
Over time Mondelēz International expects to
deliver comprehensive synergies and a range of benefits including
procurement and manufacturing expertise, building upon Chipita
S.A.’s existing differentiated capabilities.
Mondelēz International plans to fund the
purchase price of approximately $2 billion, which is subject to
certain closing purchase price adjustments, through a combination
of new debt issuance and existing cash.
Mondelēz International expects the transaction
to be immediately accretive to earnings per share from closing. The
transaction is subject to relevant antitrust approvals and closing
conditions. The perimeter of the transaction does not include P.G.
Nikas S.A., a meat-processing business, or Chipita S.A.’s minority
interest in its Indian joint venture.
The acquisition of Chipita S.A. builds on
Mondelēz International’s continued expansion into fast-growing
snacking segments. In 2021, the Company has acquired Grenade, a
leading UK performance nutrition company, Gourmet Food Holdings, a
leading Australian food company in the attractive premium biscuit
and cracker category, and Hu, a well-being snacking company in the
United States.
About Mondelēz International
Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to
snack right in over 150 countries around the world. With 2020 net
revenues of approximately $27 billion, MDLZ is leading the future
of snacking with iconic global and local brands such as OREO,
belVita and LU biscuits; Cadbury Dairy Milk, Milka and Toblerone
chocolate; Sour Patch Kids candy and Trident gum. Mondelēz
International is a proud member of the Standard and Poor’s 500,
Nasdaq 100 and Dow Jones Sustainability Index. Visit
www.mondelezinternational.com or follow the company on Twitter at
www.twitter.com/MDLZ .
About Chipita S.A.
Chipita S.A. was established in Greece 40 years
ago. It is one of the largest producers of salty and sweet snacks
in Central and Eastern Europe, with approximately $580 million of
revenue in 2020. With a leading position in the production of
packaged croissant and baked snacks, the company has a portfolio of
iconic brands that among others include: 7Days, Chipicao, and
Fineti. A pillar to the company’s decision making has been the
development and expansion of confectionary and baked snacks across
many markets, driven by innovation and strong manufacturing
capabilities. It has 13 production plants with presence in over 50
countries and employs more than 5,100 employees.
Forward-Looking StatementsThis
press release contains forward-looking statements. Words, and
variations of words, such as “will,” “may,” “expect,” “plan” and
similar expressions are intended to identify these forward-looking
statements, including, but not limited to, statements about
Mondelēz International’s strategy and plans for growth, the
transaction and the expected results of the transaction, and the
benefits to and future prospects for the Chipita S.A. business.
These forward-looking statements are subject to a number of risks
and uncertainties, many of which are beyond Mondelēz
International’s control, which could cause Mondelēz International’s
actual results to differ materially from those indicated in these
forward-looking statements.
Please also see Mondelēz International’s risk
factors, as they may be amended from time to time, set forth in its
filings with the U.S. Securities and Exchange Commission, including
its most recently filed Annual Report on Form 10-K. Mondelēz
International disclaims and does not undertake any obligation to
update or revise any forward-looking statement in this press
release, except as required by applicable law or regulation.
Contacts:
Jess Vogl (Media) |
Shep Dunlap (Investors) |
+1 847 943 5678 |
+1 847 943 5454 |
news@mdlz.com |
ir@mdlz.com |
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