Mondelēz International announced a definitive agreement to sell its developed market gum business in the US, Canada and Europe to Perfetti Van Melle Group, a European gum and confectionery maker for a purchase price of US$1.35 billion.
The agreement aims to advance the company’s portfolio reshaping strategy, which it outlined at its Investor Day in May, to enable a greater focus on growth and reinvestment in its core chocolate, biscuit and baked snacks categories.
The sale includes the company’s manufacturing facilities in Rockford, Illinois and Skarbimierz, Poland and gum brands Trident, Dentyne, Stimorol, Bubbalo and others in the US, Canada and Europe as well as European candy brands Cachou Lajaunie, Negro and La Vosgienne. Mondelēz will continue to operate its gum business outside the US, Canada and Europe, with Stride in China and other candy brands and products.
“As we continue progressing our Vision 2030 focus and acceleration strategy, doubling down on our core snacking categories, we are pleased to transition our developed market gum business to a values-led, family-owned company whose portfolio is a strategic fit, and where our brands and people can thrive,” explained Dirk Van de Put, Chairman and CEO, Mondelēz International.
The acquisition of the market gum business “complements” the Perfetti Van Melle portfolio which includes global brands such as Mentos, Chupa Chups, Alpenliebe and Fruit-tella, among others.
“Perfetti Van Melle will be an excellent home for the management team and employees of Mondelēz’s gum business in North America and Europe,” said Egidio Perfetti, Chairman of Perfetti Van Melle Group. “We have long admired the product and brand portfolio of the gum business and look forward to combining them with the Perfetti Van Melle brand family,” said Daniele Perfetti, Vice Chairman of Perfetti Van Melle Group.
Mondelēz’s Vision 20230 strategy aims to generate 90% of its revenue in chocolate and biscuits including baked snacks – categories which have been identified by the company as having significant growth opportunities – up from 59% in 2012 and 90% today.
The transaction, subject to customary closing conditions, is expected to close in Q4 of 2023.
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