Mondelēz International to acquire Europe-based snack player Chipita

The acquisition will enable the Mondelēz International business to offer a broad bakery portfolio

Mondelēz International has announced an agreement to acquire Chipita, a high-growth key player in the Central and Eastern European croissants and baked snacks category.

First established in Greece over 40 years ago, Chipita has a proven track record of consistent growth from its portfolio of croissant and baked snack brands, including 7Days, Chipicao, and Fineti.

Chipita’s products, produced in 13 manufacturing plants, and delivered in more than 50 countries, reach two billion consumers. The acquisition will enable the Mondelēz International business to offer a broad bakery portfolio – biscuits, cake and now pastry – meeting growing consumer demand for this segment.

In addition to bringing a new category to Mondelēz International, the acquisition will also offer significantly increased presence in the fast-growing Central and Eastern European markets where Chipita’s business is especially well positioned.

Mondelēz International will utilise Chipita’s Central and Eastern European distribution network capabilities to enhance its distribution in the region and continue to bring the brands to new countries in the region and beyond. The deal will also offer innovation and co-branding opportunities by bringing Mondelēz International’s iconic chocolate brands to new categories.

Over time Mondelēz International expects to deliver comprehensive synergies and a range of benefits including procurement and manufacturing expertise, building upon Chipita’s existing differentiated capabilities.

Mondelēz International plans to fund the purchase price of approximately $2 billion, which is subject to certain closing purchase price adjustments, through a combination of new debt issuance and existing cash.

Mondelēz International expects the transaction to be immediately accretive to earnings per share from closing. The transaction is subject to relevant antitrust approvals and closing conditions. The perimeter of the transaction does not include PG Nikas, a meat-processing business, or Chipita’s minority interest in its Indian joint venture.