Mondelez acquires European bakery company Chipita for $ 2 billion
Mondelez International Inc. on Wednesday announced its $ 2 billion acquisition of central and eastern European bakery company Chipita SA. The agreement will add a new product category to the Mondelez portfolio and expand the company’s geographic reach. Mondelez will fund the deal with existing liquidity and new debt issues. The transaction should be accretive at closing. Chipita, a 40-year-old company started in Greece, generated sales of $ 580 million in 2020. Chipita brands include 7Days, Chipicao and Fineti. The acquisition does not include a meat processing company, PG Nikas SA, or Chipita’s minority stake in an Indian joint venture. Chipita products are manufactured in 13 factories and sold in 50 countries. So far in 2021 Mondelez has also acquired UK nutrition company Grenade, Australian cracker company Gourmet Food Holdings and US snack company Hu. Mondelez stock has gained 9% for the year to date, while the S&P 500 index is up 11.5% for the period. Visit MarketWatch.com for more information on this news.
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