(Reuters) -Mondelez Worldwide Inc mentioned on Monday it’ll purchase power bar maker Clif Bar & Firm for $2.9 billion to broaden its international snack bar enterprise.
The Cadbury maker may also pay extra quantities to the sellers relying upon its earnings from Clif Bar, Mondelez (NASDAQ:) mentioned.
The corporate mentioned it’ll get the Clif, Luna and Clif Child manufacturers of bars in its portfolio by the acquisition, making a $1 billion-plus international snack bar franchise for itself.
“Mondelēz Worldwide is the proper accomplice on the proper time to help Clif in our subsequent chapter of progress,” mentioned Sally Grimes, Chief Government Officer, Clif Bar & Firm. “Our functions and cultures are aligned and being a part of a world snacking firm with broad product choices can assist us speed up our progress.”
Mondelez will proceed to fabricate Clif’s merchandise in its amenities at Twin Falls in Idaho and Indianapolis in Indiana, the corporate mentioned.
The meals and beverage large, which additionally makes Toblerone, Oreo and Tang, expects the transaction to be accretive to its topline within the second yr following the deal and also will create price synergies for Clif’s distribution as a result of firm’s international scale.
Clif Bar’s acquisition marks the ninth deal since 2018 as Mondelez works in direction of reshaping its portfolio for larger long-term progress.
Mondelez expects natural web income to extend over 4% in 2022, whereas its long-term progress goal is of greater than 3%.
The deal is anticipated to shut within the third quarter, Mondelez mentioned.