Mondelez Energy bar maker Cliff Bar is set to buy for about $ 3 billion
Mondelez International said Monday it would buy energy bar maker Cliff Bar & Co. for 2.9 billion to expand its global snack bar business.
The Cadbury manufacturer will also pay vendors an additional amount depending on Cliff Bar’s earnings, Mondelez said.
The company says it will acquire bars of the Cliff, Luna and Cliff Kid brands in its portfolio through the acquisition and create its own $ 1 billion global snack bar franchise.
“Mondelez International is the right partner at the right time to support Cliff in the next chapter of our growth,” said Sally Grimes, CEO of Cliff Bar & Company. “Our goals and culture are aligned and being part of a global snacking company with a wide range of product offerings can accelerate our growth.”
Mondelez will continue to manufacture Cliff’s products in Twin Falls, Idaho and Indianapolis, Indiana, the company said.
The food and beverage giant, which also makes Toblerone, Oreo and Tang, expects the deal to rise to its topline in the second year after the deal and also coordinate costs for the company’s global distribution of cliffs.
The acquisition of Cliff Bar is the ninth deal since 2018 as Mondelez is working towards shaping its portfolio for long-term growth.
Mondelez (MDLZ) expects organic net revenue to grow by more than 4% in 2022, while its long-term growth target is more than 3%.
The deal is expected to close in the third quarter, Mondelez said.