By Will Feuer

 

Mondelez International Inc. says it has reached a deal to buy Grupo Bimbo's confectionery business, Ricolino, for about $1.3 billion.

Ricolino--which employs about 6,000 people, has four manufacturing facilities and distributes its products to supermarkets and convenience stores throughout Mexico--does about $500 million in annual sales, Mondelez said.

The deal would expand Mondelez's presence in the snacking category and double the size of Mondelez's Mexico business, the company said.

"This acquisition will provide a step change for our business in Mexico, an important growth market for us, more than tripling our routes to market and growing our position in core snacking categories," Mondelez Chairman and Chief Executive Dirk Van de Put said.

The deal will be funded through an issuance of debt and cash on hand and is expected to close in the third or fourth quarter of the year, Mondelez said.

 

Write to Will Feuer at Will.Feuer@wsj.com

 

(END) Dow Jones Newswires

April 25, 2022 08:31 ET (12:31 GMT)

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