Mondelez International Plans to Acquire Chipita for About $2 Billion

By Michael Dabaie

Mondelez International Inc. said it would acquire Chipita SA, a maker of croissants and baked snacks for Central and Eastern Europe.

Mondelez said it plans to fund the purchase price of about $2 billion through a combination of new debt issuance and existing cash.

Chipita had about $580 million of revenue in 2020 and has a track record of growth from its portfolio of croissant and baked snack brands, including 7Days, Chipicao, and Fineti, Mondelez said.

The deal brings a new category to Mondelez and would also offer increased presence in the Central and Eastern European markets, the company said.

Mondelez said it expects the deal to immediately boost to earnings per share. The perimeter of the deal doesn't include P.G. Nikas SA, a meat-processing business, or Chipita's minority interest in its Indian joint venture, Mondelez said.

Mondelez said it would use Chipita's Central and Eastern European distribution network capabilities to enhance its own distribution in the region. The deal will also offer co-branding opportunities, the company said.

Over time Mondelez expects to deliver synergies and benefits including in procurement and manufacturing, the company said.

Write to Michael Dabaie at [e-mail]

(END) Dow Jones Newswires

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