Mondelez International said on Monday it will buy energy bar maker Clif Bar & Company for $2.9 billion to expand its global snack bar business.
The Cadbury maker will also pay additional amounts to the sellers depending upon its earnings from Clif Bar, Mondelez said.
The company said it will get the Clif, Luna and Clif Kid brands of bars in its portfolio through the acquisition, creating a $1 billion-plus global snack bar franchise for itself.
Mondelez will continue to manufacture Clif’s products in its facilities at Twin Falls in Idaho and Indianapolis in Indiana, the company said.
“Mondelēz International is the right partner at the right time to support Clif in our next chapter of growth,” said CLif Bar CEO Sally Grimes. “Our purposes and cultures are aligned and being part of a global snacking company with broad product offerings can help us accelerate our growth.”
The food and beverage giant is also the maker of Toblerone, Oreo and Tang, among other high-profile international food and snack brands. The company expects the deal to boost their topline in the short to medium term, while also helping Clif’s position through greater access to Mondelez’ global markets and increased scale. The move is part of Mondelez’ attempts to shore up its long-term profitability, which it has pursued through a series of acquisitions since 2018.
Related: Mondelez International Faces EU Probe
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
