Mondelēz Inks Agreement to Acquire Mexico’s Leading Confectionery Company
The transaction is expected to accelerate the company's growth and scale in core snacking categories.
CHICAGO — Mondelēz International Inc. has entered into an agreement with Grupo Bimbo to acquire its confectionery business, Ricolino, for approximately $1.3 billion. The acquisition will transform Mondelēz International's business in the high-priority Mexico market to accelerate growth and scale in core snacking categories, according to the company.
"This acquisition will provide a step change for our business in Mexico, an important growth market for us, more than tripling our routes to market and growing our position in core snacking categories," said Dirk Van de Put, chairman and CEO of Mondelēz International. "We are thrilled to welcome Ricolino's talented people and amazing brands into the Mondelēz International family."
With approximately $500 million in annual revenue, Ricolino employs close to 6,000 associates, has four manufacturing facilities and distributes its products to several channels, including traditional trade, supermarkets, convenience stores and others. Its brands include Ricolino, Vero, La Corona and Coronado, which manufacture lollipops, marshmallows, chocolates, gummies and other confectionery products.
The acquisition will double the size of Mondelēz Mexico's business and provide an attractive entry point into the chocolate category while expanding the company's presence in snacking. It also provides significant opportunities for synergies and accelerated growth. For Grupo Bimbo, the transaction will enable it to focus on its grain-based baking and snacks businesses.
"We ventured into the confectionery industry with the establishment of Ricolino in 1970.Today, after 52 years of growth and progress, it is the industry leader in Mexico. We truly recognize the Ricolino family for this amazing accomplishment and are deeply thankful for their commitment and hard work. I'm confident that Mondelēz International will leverage these amazing brands to a much higher position," said Daniel Servitje, chairman and CEO of Grupo Bimbo.
Many of Ricolino's chocolate and candy brands have more than 50 years' history in Mexico. Today, the company's more than 2,100 direct store delivery routes reach 440,000 traditional trade outlets.
"I want to take the opportunity to thank all of our associates for their dedication and commitment. They have given their best and I feel very proud of them," said Fernando Lerdo de Tejada S., president of Ricolino.
The acquisition of Ricolino will build on Mondelēz International's continued prioritization of fast-growing snacking segments in key geographies. In January 2022, Mondelēz International closed on its acquisition of Chipita S.A.in the central and eastern European snack-size cakes and pastries category.
This followed a year of growth in 2021 supported by the acquisition of Grenade, a U.K.-based performance nutrition company; Gourmet Food Holdings, an Australian premium biscuit and cracker company; and Hu, a "well-being" snacking company in the United States.
The transaction, which is subject to customary closing conditions, will be funded through an issuance of debt and cash on hand and is expected to close in the late third quarter or early fourth quarter of 2022.
Chicago-based Mondelēz International Inc. had 2021 net revenues of approximately $29 billion. It is known for many brands, including Oreo, belVita and LU biscuits; Cadbury Dairy Milk, Milka and Toblerone chocolate; Sour Patch Kids candy and Trident gum.
Grupo Bimbo is the largest baking company in the world, with 206 bakeries and plants and more than 1,600 sales centers strategically located in 33 countries throughout the Americas, Europe, Asia and Africa. Its main product lines include sliced bread, buns and rolls, pastries, cakes, cookies, toast, English muffins, bagels, tortillas and flatbreads, salty snacks and confectionery products, among others.