Mondelez International said on Monday it will purchase energy bar producer Clif Bar and Company for $2.9 billion to grow its global snack bar business.
The Cadbury creator will likewise pay extra adds up to the venders relying on its earnings from Clif Bar, Mondelez said.
The organization said it will get the Clif, Luna and Clif Kid brands of bars in its portfolio through the acquisition, making a $1 billion or more global snack bar franchise for itself.
“Mondelēz International is the right partner at the right time to support Clif in our next chapter of growth,” said Sally Grimes, chief executive officer of 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 keep on assembling Clif’s items in its facilities at Twin Falls, Idaho, and Indianapolis, Indiana, the organization said.
The food and beverage giant, which likewise makes Toblerone, Oreo and Tang, anticipates that the exchange should be accretive to its topline in the second year following the deal and will likewise make cost synergies for Clif’s distribution because of the organization’s global scale.
Clif Bar’s acquisition marks the ninth deal starting around 2018 as Mondelez makes progress toward reshaping its portfolio for higher long-term development.
Mondelez (MDLZ) anticipates that organic net revenue should increment more than 4% in 2022, while its long-term growth target is of over 3%.
The deal is expected to shut in the second from last quarter, Mondelez said.