Mondelez acquires Mexico's leading confectionery for $1.3 billion

CHICAGO - Mondelez International Monday said it has entered into an agreement with Grupo Bimbo to acquire its confectionery business, Ricolino, for approximately $1.3 billion.

Ricolino is a growing business with a leading confectionery position in Mexico. The acquisition will transform Mondelez International's business in the high-priority Mexico market to accelerate growth and scale in core snacking categories, the company said.

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 iconic brands include Ricolino, Vero, La Corona and Coronado, which are top selling lollipops, marshmallows, chocolates, gummies and other confectionery products.

The acquisition will double the size of Mondelez 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 leading baking company in the world, this transaction will enable focus on its grain-based baking and snacks businesses.

"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 Mondelez International.

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, Mondelez' top brands include Oreo cookies, belVita and LU biscuits; Cadbury Dairy Milk, Milka and Toblerone chocolate; Sour Patch Kids candy and Trident gum.