Mondelēz set to acquire bakery and snacks player Chipita - FoodIngredientsFirst

27 May 2021 --- Mondelēz International is entering an agreement to acquire Chipita, which is pegged as a high-growth key player in the Central and Eastern European croissants and baked snacks category. Mondelēz expects the transaction to be immediately accretive to earnings per share from closing. It is subject to relevant antitrust approvals and closing conditions. 

Mondelēz plans to fund the purchase price of approximately US$2 billion, which is subject to certain closing purchase price adjustments, through a combination of new debt issuance and existing cash.

First established in Greece over 40 years ago, Chipita generated approximately US$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.

“We are still in the early stages of the acquisition process and, therefore, we are not yet able to confirm when the merger would complete,” a Mondelēz spokesperson tells FoodIngredientsFirst.

“Chipita is the perfect addition to the Mondelēz family of brands as it enables us to deliver enhanced scale and growth as a snacking business and advance our strategy to become a global leader in broader snacking,” they detail.

“It also provides us with a strong position in the US$65 billion global croissants and baked snack category.”

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Chipita generated approximately US$580 million of revenue in 2020.

The deal will also offer innovation and co-branding opportunities by bringing Mondelēz’s classic chocolate brands to new categories. 

The scope of this transaction does not include P.G. Nikas, a meat-processing business, or Chipita’s minority interest in its Indian joint venture.

Active in over 50 global markets
Chipita’s products are currently produced in 13 manufacturing plants and delivered in more than 50 countries, reaching two billion consumers.

Dirk Van de Put, chairman CEO of Mondelēz, says Chipita’s 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.”

Mondelēz’s snacking segment growth
Chipita’s acquisition builds on the company’s continued expansion into the fast-growing global snacking segment. Throughout the COVID-19 pandemic, the food giant has observed a surge in snacking as consumers were forced to stay indoors.

In 2021, the company acquired Grenade, a UK performance nutrition brand; Gourmet Food Holdings, an Australian food company in the attractive premium biscuit and cracker category; and Hu, a well-being snacking company in the US.

To help sustain snacking innovation, Mondelēz’s venture hub SnackFutures recently launched CoLab. The start-up engagement program targets early-stage snack brands targeting well-being, who stand to receive a US$20,000 grant.

By Benjamin Ferrer

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Mondelēz set to acquire bakery and snacks player Chipita - FoodIngredientsFirst
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