Mondelez International–the company behind popular candies like Cadbury–has announced that it is buying Clif Bar & Company for $2.9 billion in an effort to expand its global snack bar business.
Mondelez will also pay additional amounts depending on its earnings. It will also recieve the Luna and Clif Kid brands as a part of the acquisition, which is creating a $1 billion-plus global snack bar franchise for itself.
Sally Grimes, chief executive officer at Clif Bar & Company stated that “Mondelez International is the right partner at the right time to support Clif in our next chapter of growth. Our purposes and cultures are aligned and being part of a global snacking company with broad product offerings can help us accelerate our growth.”
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Mondelez will continue to manufacture Clif’s products in the facilities at Twin Falls, Idaho, and Indianapolis, Indiana.
Mondelez International is a giant in the food and beverage industry, responsible for other brands like Tolberone and Oreo. It would mark the ninth deal since 2018 for Mondelez as they work towards shaping their portfolio for higher long-term growth.
Mondelez is expecting organic net revenue to increase over 4% in 2022, with a long term growth target of more than 3%. The deal is expected to close in third quarter.
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