Mondelez International Plans to Acquire Chipita for About $2 Billion
May 26 2021 - 09:59AM
Dow Jones News
By Michael Dabaie
Mondelez International Inc. said it would acquire Chipita SA, a
maker of croissants and baked snacks for Central and Eastern
Europe.
Mondelez said it plans to fund the purchase price of about $2
billion through a combination of new debt issuance and existing
cash.
Chipita had about $580 million of revenue in 2020 and has a
track record of growth from its portfolio of croissant and baked
snack brands, including 7Days, Chipicao, and Fineti, Mondelez
said.
The deal brings a new category to Mondelez and would also offer
increased presence in the Central and Eastern European markets, the
company said.
Mondelez said it expects the deal to immediately boost to
earnings per share. The perimeter of the deal doesn't include P.G.
Nikas SA, a meat-processing business, or Chipita's minority
interest in its Indian joint venture, Mondelez said.
Mondelez said it would use Chipita's Central and Eastern
European distribution network capabilities to enhance its own
distribution in the region. The deal will also offer co-branding
opportunities, the company said.
Over time Mondelez expects to deliver synergies and benefits
including in procurement and manufacturing, the company said.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
May 26, 2021 09:51 ET (13:51 GMT)
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