Mondelez International, Inc. (Nasdaq: MDLZ) announced an agreement to acquire Chipita S.A., 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 S.A. generated approximately $580 million of revenue in 2020 and has a proven track record of consistent growth from its portfolio of croissant and baked snack brands, including 7Days, Chipicao, and Fineti. Chipita S.A. has been at the forefront of the development and growth in the sector across multiple countries driven by its strong innovation and manufacturing capabilities.
“Welcoming Chipita S.A.’s delicious pastry products into the Mondelez International family advances our strategy to become the global leader in broader snacking,” said Dirk Van de Put, Chairman & CEO of Mondelez International. “Their iconic brands and significant scale across so many attractive geographies make them a strong strategic complement to our existing portfolio and future growth ambitions in Europe and beyond.”
Chipita S.A.’s products, produced in 13 manufacturing plants, and delivered in more than 50 countries, reach two billion consumers. The acquisition will enable the Mondelez International business to offer a broad bakery portfolio – biscuits, cake and now pastry – meeting growing consumer demand for this segment.
Chipita S.A.’s Chief Executive Officer, Spyros Theodoropoulos, said: “Chipita, for more than 40 years, based on quality and innovation created a new category of snacks loved by consumers internationally. I am certain that the acquisition of Chipita by Mondelez International, one of the world’s leading snacking companies, will create new prospects for its people and products.”
In addition to bringing a new category to Mondelez International, the acquisition will also offer significantly increased presence in the fast-growing Central and Eastern European markets where Chipita S.A.’s business is especially well positioned.
Mondelez International will utilize Chipita S.A.’s Central and Eastern European distribution network capabilities to enhance its own 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 Mondelez International’s iconic chocolate brands to new categories.
Over time Mondelez International expects to deliver comprehensive synergies and a range of benefits including procurement and manufacturing expertise, building upon Chipita S.A.’s existing differentiated capabilities.
Mondelez 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.
Mondelez 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 P.G. Nikas S.A., a meat-processing business, or Chipita S.A.’s minority interest in its Indian joint venture.
The acquisition of Chipita S.A. builds on Mondelez International’s continued expansion into fast-growing snacking segments. In 2021, the Company has acquired Grenade, a leading UK performance nutrition company, Gourmet Food Holdings, a leading Australian food company in the attractive premium biscuit and cracker category, and Hu, a well-being snacking company in the United States.