Mondelez acquires Mexican confectionery leader for $1.3 billion
CHICAGO — Mondelez International announced Monday that it has reached an agreement with Grupo Bimbo to acquire its confectionery business, Ricolino, for approximately $1.3 billion.
Ricolino is a growing company with a leading position in confectionery in Mexico. The acquisition will transform Mondelez International’s business in the priority Mexico market to accelerate growth and scale in key snack categories, the company said.
With annual sales of approximately $500 million, Ricolino employs nearly 6,000 associates, has four manufacturing plants, and distributes its products through multiple channels, including brick-and-mortar, supermarkets, convenience stores, and others. Its iconic brands include Ricolino, Vero, La Corona and Coronado, which are the top-selling lollipops, marshmallows, chocolates, gummies and other confectionery products.
The acquisition will double the size of Mondelez Mexico’s business and provide an attractive entry point into the chocolate category, while expanding the company’s presence in snacking. It also offers significant opportunities for synergies and growth acceleration.
For Grupo Bimbo, the world leader in bakery, this transaction will allow it to focus on its bakery and cereal-based snacks activities.
“This acquisition will bring a step change to our business in Mexico, an important growth market for us, tripling our routes to market and strengthening our position in key snacking categories,” said Dirk Van de Put, Chairman and CEO of Mondelez International. .
Many of Ricolino’s chocolate and candy brands have over 50 years of history in Mexico. Today, the company’s more than 2,100 direct store delivery routes reach 440,000 brick-and-mortar outlets. Mondelez’s leading brands include Oreo, belVita and LU cookies; Cadbury Dairy Milk, Milka Chocolate and Toblerone; Sour Patch Kids candies and Trident gum.