Mondelez to buy Mexican breadmaker Bimbo's Ricolino for $1.3 billion
Reuters
Published Apr 25, 2022 08:08AM ET
Updated Apr 25, 2022 08:45AM ET
(Reuters) -Mondelez International Inc said on Monday it would buy breadmaker Grupo Bimbo's confectionery business, Ricolino, for around $1.3 billion, as the Toblerone chocolate maker plans to expand in Mexico.
Several U.S. 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.
The Ricolino deal, the latest in Mondelez (NASDAQ:MDLZ)'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 U.S. firm said.
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.
Mondelez earlier this year acquired Greek food firm Chipita S.A. for $2 billion after buying British nutrition firm Grenade, Australian biscuit maker Gourmet Food Holdings and U.S.-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.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.