Mondelez International, snack and confectionery multinational, has agreed to pay US$1.3bn for the Mexican confectionery business Ricolino from bakery firm Grupo Bimbo.
Ricolino was launched in 1970 and sells snacks and confectionery products including lollipops, marshmallows, chocolates, and gummies under its brand name, and Vero, La Corona, and Coronado brands.
According to sources, this acquisition is part of Mondelez International expansion strategy outside the US, which has described Mexico as an important “growth market”.
“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 Mondelez chairman and CEO Dirk Van de Put.
Daniel Servitje, the chairman and CEO of Grupo Bimbo, said: “Today, after 52 years of growth and progress, it is the industry leader in Mexico. I’m confident that Mondelez International will leverage these amazing brands to a much higher position”.
The deal is expected the be closed “in late Q3 or early Q4” this year.
Sources: Just Food / Reuters