Mondelez International Inc stated on Monday it would purchase power bar maker Clif Bar & Company for $2.9 billion to increase its world snack bar enterprise.
The Cadbury maker may also pay extra quantities to the sellers relying upon its earnings from Clif Bar, Mondelez stated.
The firm stated it would get the Clif, Luna and Clif Kid manufacturers of bars in its portfolio by the acquisition, making a $1 billion-plus world snack bar franchise for itself.
“Mondelēz International is the right partner at the right time to support Clif in our next chapter of growth,” stated Sally Grimes, Chief Executive Officer, Clif Bar & Company. “Our purposes and cultures are aligned and being part of a global snacking company with broad product offerings can help us accelerate our growth.”
Mondelez will proceed to fabricate Clif’s merchandise in its services at Twin Falls in Idaho and Indianapolis in Indiana, the corporate stated.
The meals and beverage large, which additionally makes Toblerone, Oreo and Tang, expects the transaction to be accretive to its topline within the second 12 months following the deal and also will create value synergies for Clif’s distribution as a result of firm’s world scale.
Clif Bar’s acquisition marks the ninth deal since 2018 as Mondelez works in direction of reshaping its portfolio for larger long-term development.
Mondelez expects natural web income to extend over 4% in 2022, whereas its long-term development goal is of greater than 3%.
The deal is predicted to shut within the third quarter, Mondelez stated.
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Source: www.financialexpress.com”