(Reuters) -Mondelez International Inc stated on Monday it will purchase energy bar maker Clif Bar & Company for $2.9 billion to broaden its worldwide sandwich shop service.
The Cadbury maker will likewise pay extra total up to the sellers relying on its revenues from Clif Bar, Mondelez (NASDAQ:) stated.
The business stated it will get the Clif, Luna and Clif Kid brand names of bars in its portfolio through the acquisition, producing a $1 billion-plus worldwide sandwich shop 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 continue to make Clif’s items in its centers at Twin Falls in Idaho and Indianapolis in Indiana, the business stated.
The food and drink giant, which likewise makes Toblerone, Oreo and Tang, anticipates the deal to be accretive to its topline in the 2nd year following the offer and will likewise produce expense synergies for Clif’s circulation due to the business’s worldwide scale.
Clif Bar’s acquisition marks the ninth offer given that 2018 as Mondelez works towards improving its portfolio for greater long-lasting development.
Mondelez anticipates natural net income to increase over 4% in 2022, while its long-lasting development target is of more than 3%.
The offer is anticipated to close in the 3rd quarter, Mondelez stated.