Global food and snacking giant Mondelez International Inc MDLZ reached an agreement on Tuesday to acquire a significant majority stake in Canada's Give & Go.
Give & Go is a leader in the fully-finished sweet baked goods category, most famous for its "two-bite" brownies, and "Create-A-Treat" cookie and gingerbread house decorating kits. Financial terms of the transaction were not disclosed but Give & Go recorded revenues of around $500 million in 2019.
Give & Go's brand will complement Mondelez's existing portfolio of snackbrands, especially Oreo, Cadbury, Milka, and belVita. The acquisition will give Mondelez better exposure to the fast-growing in-store bakery category.
Why It's Important
Similar to Mondelez's acquisitions of Prefect Snacks and Tate's Bake Shop, buying Give & Go represents a means of taking advantage of faster growing snacking adjacencies, Glen Walter, Executive Vice President and President, North America, for Mondelez, said in the press release.
"Our ambition is to lead the future of snacking by offering consumers a broad range of snacks in key growth channels and categories," the executive said.
Mondelez expects the transaction to close in the second quarter of 2020. Once completed, the new business will operate separately to best "nurture its innovative and entrepreneurial spirit," according to Mondelez. Give & Go's senior leadership team will hold onto a minority stake in the company and continue running the business from their existing headquarters.
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