Mondelēz International has agreed to acquire Grupo Bimbo’s confectionery business, Ricolino, for approximately $1.3 billion.
According to Mondelēz, Ricolino has a leading position in the confectionery market in Mexico, offering lollipops, marshmallows, chocolates, gummies and other products through brands including Ricolino, Vero and La Corona.
The business employs nearly 6,000 workers, has four manufacturing facilities and records annual revenue of around $500 million.
The deal will double the size of Mondelēz Mexico’s business and is expected to accelerate the company’s growth in core snacking categories.
“This acquisition will provide a step change for our business in Mexico, an important growth market for us, more than tripling our routes to market and growing our position in core snacking categories,” said Dirk Van de Put, chairman and CEO of Mondelēz International.
“We are thrilled to welcome Ricolino’s talented people and amazing brands into the Mondelēz International family.”
Meanwhile, the sale will allow Grupo Bimbo to focus on its grain-based baking and snacks businesses.
“We ventured into the confectionery industry with the establishment of Ricolino in 1970; today, after 52 years of growth and progress, it is the industry leader in Mexico,” said Daniel Servitje, chairman and CEO of Grupo Bimbo.
“We truly recognise the Ricolino family for this amazing accomplishment and are deeply thankful for their commitment and hard work. I’m confident that Mondelēz International will leverage these amazing brands to a much higher position.”
The transaction, which is subject to customary conditions, is expected to close later this year.
The deal marks the latest in a string of acquisitions by Mondelēz, which since the beginning of 2021 has snapped up baked goods firm Chipita, performance nutrition brand Grenade, Australian food company Gourmet Food Holdings and US snacking company Hu.
