Mondelez Agrees To Acquire Confectionery Company Ricolino For $1.3B

Mondelez International Inc MDLZ has agreed to acquire Grupo Bimbo’s confectionery business, Ricolino, for $1.3 billion.
The company expects the acquisition to double the size of its Mexico business and provide an attractive entry point into the chocolate category while expanding its presence in snacking.
Ricolino’s annual revenue is about $500 million. It employs 6,000 associates and has four manufacturing facilities.
Ricolino’s chocolate and candy brands, including Ricolino, Vero, La Corona, and Coronado, complement the MDLZ portfolio.
The deal is expected to close in the late third quarter or early fourth quarter.
Mondelez plans to fund the deal by issuing debt and cash on hand. It held $3.5 billion in cash and equivalents as of December 31, 2021.
Price Action: MDLZ shares are trading higher by 0.17% at $65.17 on the last check Monday.