US: Mondelēz International to acquire Clif Bar & Company for $3bn

Mondelēz bolsters ‘healthier’ snack portfolio with Clif Bar deal as it pledges to expand the bar’s global distribution
Clif Bar & Company
Source: Clif Bar & Company’s website

Chicago-based multinational confectionery corporation Mondelēz International is acquiring plant-based energy bar business Clif Bar & Company for $2.9 billion with additional contingent earnout consideration.

According to a Mondelēz statement, the transaction is expected to be top-line accretive in year two and create cost synergies by expanding Clif’s sales distribution and gaining further penetration in existing and new customers and channels across the US.

Reuters reported the deal would provide Mondelēz with a $1 billion-plus global snack bar franchise including the Clif, Clif Kigs and Luna bar portfolios.

Dirk Van de Put, chairman and chief executive of Mondelēz International, said: “This transaction further advances our ambition to lead the future of snacking by winning in chocolate, biscuits and baked snacks as we continue to scale our high-growth snack bar business.

“As a leader and innovator in wellbeing and sustainable snacking in the US, Clif Bar & Company embodies our purpose to empower people to snack right and we look forward to advancing this important work with Clif’s committed colleagues in the years ahead,” Van de Put said.

Sally Grimes, chief executive at Clif Bar & Company, said: “Mondelēz International is the right partner at the right time to support Clif in our next chapter of growth. Our purposes and cultures are aligned and being part of a global snacking company with broad product offerings can help us accelerate our growth while staying true to our deeply ingrained five aspirations: sustaining our people, planet, community, business, and brands.”

Mondelēz International will continue to operate the Clif Bar business from its Emeryville headquarters, with manufacturing to continue to run at its Twin Falls and Indianapolis facilities.

The company recently agreed to acquire Ricolino, a confectionary company in Mexico, from Grupo Bimbo and closed on its acquisition of Chipita, a firm in the Central and Eastern European producing snack-size cakes and pastries.

Last year Mondelēz acquired Grenade, a UK performance nutrition company; Gourmet Food Holdings, an Australian food company in the premium biscuit and cracker category; and Hu, a wellbeing snacking company in the US. This marks its ninth deal since 2018.

The acquisition is expected to close in the third quarter this year.

In April, the snacking behemoth reported net revenue growth of 7.3% year-over-year for Q1 22, driven by pricing and volume.