Mondelez in $1.35bn deal to sell its gum business to Perfetti
MANAMA, December 21, 2022
Food and beverage giant Mondelēz International has entered into definitive agreements to sell its developed-market gum business in the US, Canada and Europe to Perfetti Van Melle Group, a leading European gum and confectionery maker for a headline purchase price of $1.35 billion.
Following the deal, which was sealed at an amount which is 15 times equivalent to estimated current year ebitda, Mondelez said it would continue to operate its gum business outside of the US, Canada and Europe, led by its Stride brand in China, said Mondelēz International in its statement.
The divestiture advances the company’s portfolio reshaping strategy, as outlined at its Investor Day in May, enabling greater focus on growth and reinvestment in its core chocolate, biscuit and baked snacks categories.
The sale to Perfetti includes manufacturing facilities in Rockford, IL and Skarbimierz, Poland and the gum brands Trident, Dentyne, Stimorol, Hollywood, V6, Chiclets, Bubbaloo and Bubblicious in the US, Canada and Europe, as well as the European candy brands Cachou Lajaunie, Negro, and La Vosgienne.
The maker of Kraft and Oreo branded products, Mondelēz has a major presence in the region through its manufacturing plants in UAE, Saudi Arabia and Bahrain.
On the strategic move, Chairman and CEO Dirk Van de Put said: "As we continue progressing our Vision 2030 focus and acceleration strategy, doubling down on our core snacking categories, we are pleased to transition our developed market gum business to a values-led, family-owned company whose portfolio is a strategic fit, and where our brands and people can thrive."
The acquisition of Mondelēz International’s developed market gum business complements the Perfetti Van Melle portfolio—including iconic global brands such as Mentos, Chupa Chups and Alpenliebe, he stated.
According to experts, demand for many of Mondelēz’s snack brands surged during the peak of Covid-19 pandemic, as Americans and Europeans turned to Oreo cookies and other snacks while they adjusted to working from home.
The gum business, however, was hit hard as the pandemic hampered on-the-go sales, they added.
"Perfetti Van Melle will be an excellent home for the management team and employees of Mondelēz International’s gum business in North America and Europe," remarked its Chairman Egidio Perfetti.
Mondelēz International’s Vision 2030 strategy aims to generate 90% of revenue in chocolate and biscuits, including baked snacks—categories identified with significant growth opportunities for the Company —up from 59% in 2012 and 80% today.
Group Vice Chairman Daniele Perfetti said: “We have long admired the product and brand portfolio of the gum business and look forward to combining them with the Perfetti Van Melle brand family."
The transaction, which is subject to customary closing conditions, is expected to close in Q4 of 2023.-TradeArabia News Service
