Mondelēz International Inc said it would buy breadmaker Grupo Bimbo's confectionery business, Ricolino, for around $1.3 billion (€1.2 billion), as the Toblerone chocolate maker plans to expand in Mexico.
Several US packaged food makers have been making big acquisitions in recent months as they strive to keep sales levels elevated after seeing demand skyrocket during the height of the pandemic when people hardly went to restaurants.
Ricolino
The Ricolino deal, the latest in Mondelēz's buying spree, will double the size of the Oreo maker's business in Mexico, a 'high-priority' market, and expand its snacking business, the US firm 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,” said Dirk Van de Put, Chairman and CEO of Mondelēz International.
“We are thrilled to welcome Ricolino’s talented people and amazing brands into the Mondelēz International family.”
The Ricolino business, which brought in around $500 million in annual revenue, also includes brands such as Vero, La Corona and Coronado and makes several confectionary products including lollipops, marshmallows, chocolates and gummies.
Previous Acquisitions
Mondelēz announced the acquisition of Greek food firm Chipita S.A. for $2 billion (€1.9 billion) after buying British nutrition firm Grenade, Australian biscuit maker Gourmet Food Holdings and US-based Hu last year.
Ricolino, which employs nearly 6,000 workers, has four manufacturing facilities and distributes its products to several channels, including supermarkets and convenience stores.
The deal is expected to close by the early days of the fourth quarter.
News by Reuters, additional reporting by ESM – your source for the latest A-Brands news. Click subscribe to sign up to ESM: European Supermarket Magazine.
