In order to expand its global snack bar business, Mondelez International declared on Monday of its plan of buying the energy bar maker Clif Bar & Company for $2.9 billion.
Depending upon its earnings from Clif Bar, the chocolate manufacturer will also pay additional amounts to the sellers, as revealed by Mondelez.
Mondelez opened up on creating a $1 billion-plus global snack bar franchise for itself through the acquisition of certain brands of bars like Clif, Luna and Clif Kid in its portfolio.
Sally Grimes, chief executive officer of 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.”
Mondelez informed that the deal is expected to close in the third quarter.
Mondelez is poised on revamping its portfolio for higher farsighted growth plans, this acquisition earmarks their ninth deal in the series since 2018.
This acquisition can boost the Mondelez net revenue to increase over 4% in 2022, however its long-term goal is above 3%.