Oreo maker Mondelēz International Inc has agreed to sell its gum business, including brands such as Trident and Dentyne, in the United States, Canada and Europe to Perfetti Van Melle Group for $1.35 billion (€1.27 billion).
The Cadbury maker has been reshaping its portfolio to focus more on its chocolates, biscuits and baked snacks businesses.
Mondelēz put its gum unit, which also includes brands such as Bubbaloo and Bubblicious, under a strategic review after demand took a severe hit during the COVID-19 lockdowns.
Mondelēz has been reshaping its portfolio with the aim of generating 90% of its revenue from its chocolates and biscuits divisions, having also made a series of acquisitions over the past year.
The Toblerone chocolate maker earlier this year acquired energy bar makerfor $2.9 billion (€2.73 billion) and bought Greek food firm Chipita S.A. for $2 billion (€1.88 billion).
The deal is expected to close in the fourth quarter of 2023, Mondelēz said, adding it does not include the sale of its business in France. The parties have entered into exclusive arrangements for the sale of the business in the country, it said.
'A Strategic Fit'
Dirk Van de Put, chairman and CEO, Mondelēz International stated, “As we continue progressing our Vision 2030 focus and acceleration strategy, doubling down on our core snacking categories, we are pleased to transition our developed market gum business to a values-led, family-owned company whose portfolio is a strategic fit, and where our brands and people can thrive.”
“Perfetti Van Melle will be an excellent home for the management team and employees of Mondelēz’s gum business in North America and Europe,” added Egidio Perfetti, chairman of Perfetti Van Melle Group.
“We have long admired the product and brand portfolio of the gum business and look forward to combining them with the Perfetti Van Melle brand family,” said Daniele Perfetti, vice chairman of Perfetti Van Melle Group.