In a move to expand its global snack bar business, Mondelēz International Inc. is buying energy bar maker Clif Bar & Company for US$2.9 billion.
The deal includes the Clif, Luna and Clif Kid brands, creating a $1 billion-plus global snack bar franchise for the food giant, including its complementary and refrigerated snacking business Perfect Snacks in the U.S. and performance nutrition business Grenade in the U.K.
The company said the acquisition would advance its strategy to reshape its portfolio to sustain higher long-term growth.
The global snack bar category is worth US$16 billion and growing, according to Euromonitor International.
“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,” said Dirk Van de Put, Chairman and CEO of Mondelēz International, said in a release.
Clif Bar & Company founder Gary Erickson came up with the idea for a better tasting bar while on a 175-mile bike ride near San Francisco, according to the company’s website. He worked with his mom to perfect the recipe for nutritious energy bars with organic ingredients, before launching the business in 1992. Erickson and his wife Kit Crawford led the company as co-CEOs until 2020, when Sally Grimes was named CEO. Erickson and Crawford remained on the company’s board.
“Mondelēz International is the right partner at the right time to support Clif in our next chapter of growth,” said Grimes. “Our purposes and cultures are aligned and being part of a global snacking company with broad product offerings can help us accelerate our growth.”
Mondelēz said it would continue to operate the Clif Bar business out of the company’s headquarters in Emeryville, Calif., as well as manufacture products out of current facilities in Indiana and Idaho. The deal is expected to close in Q3.
The acquisition will build on Mondelēz International’s continued prioritization of fast-growing snacking segments in key geographies. So far this year, Mondelēz has announced an agreement to acquire Mexican confectionary company Ricolino from Grupo Bimbo and closed on its acquisition of Chipita S.A., a leader in Central and Eastern European snack-size cakes and pastries category.
This article appeared at CCentral.ca.