Mondelez (MDLZ) doubled down on Mexico and further widened its expansion beyond the U.S., agreeing to pay $1.3 billion for Ricolino, the producer of chocolate and candy, from Grupo Bimbo. BMBOY
Mexico City-based Grupo Bimbo is the world's largest baking company, producing bread, cakes, toast and tortillas among some 10,000 products. Mondelez is the Chicago producer of Oreo cookies, Trident chewing gum, chocolates and many other snack products.
Ricolino, founded in 1970, reports annual revenue around $500 million. The company, employing nearly 6,000 and operating four manufacturing facilities, distributes confections under brands like Ricolino, Varo, La Corona and Coronado.
The acquisition would double Mondelez’s Mexican business, moving it into chocolate in the country and expanding its snack business there. The companies said in a news release that for Grupo Bimbo, the deal would enable the company to sharpen its focus on its grain-based baking and snacks products.
The moves are Mondelez’s latest to build on its efforts with fast-growing snack businesses worldwide.
In January Mondelez closed the purchase of Chipita, which from headquarters in Athens markets snack cakes and pastries in Central and Eastern Europe.
Last year the company acquired a majority interest in Grenade, a nutrition company in the U.K.; Gourmet Food Holdings, an Australian producer of biscuits and crackers, and Hu, the New York producer of chocolate and crackers.
The purchase of Ricolino is subject to standard closing conditions. Mondelez said it would fund the deal by issuing debt and using cash on hand. The company expects to close the deal late in the third quarter or early in the fourth.
