Mondelēz International to Sell Developed-Market Gum Business for $1.35B
CHICAGO — Mondelēz International agreed to sell its developed-market gum business in the United States, Canada and Europe to Perfetti Van Melle Group, a leading European gum and confectionery maker. The deal is set to close for $1.35 billion or 15 times equivalent to estimated current year EBITDA.
The sale includes manufacturing facilities in Rockford, Ill., and Skarbimierz, Poland, and the gum brands Trident, Dentyne, Stimorol, Hollywood, V6, Chiclets, Bubbaloo and Bubblicious, as well as the European candy brands Cachou Lajaunie, Negro and La Vosgienne.
Mondelēz will continue to operate its gum business in Latin America, Asia, the Middle East and Africa, as well as all of its other candy brands and products.
"As we continue progressing our Vision 2030 focus and acceleration strategy, doubling down on our core snacking categories, we are pleased to transition our developed market gum business to a values-led, family-owned company whose portfolio is a strategic fit, and where our brands and people can thrive," said Dirk Van de Put, chairman and CEO, Mondelēz.
The acquisition aligns with Perfetti Van Melle's preexisting portfolio, which includes well-known global brands such as Mentos, Chupa Chups and Alpenliebe.
"Perfetti Van Melle will be an excellent home for the management team and employees of Mondelēz International's gum business in North America and Europe," said Egidio Perfetti, chairman of Perfetti Van Melle.
The divestiture advances Mondelez's portfolio reshaping strategy, as outlined at its Investor Day in May, enabling greater focus on growth and reinvestment in its core chocolate, biscuit and baked snacks categories. The company currently aims to generate 90 percent of its revenue in chocolate and biscuits, up from 59 percent in 2012 and 80 percent today.
The transaction is expected to close in the fourth quarter of 2023, subject to customary closing conditions. The definitive agreements cover the sale of the business in the U.S., Canada and Europe, excluding France. The companies have entered into exclusive arrangements for the sale of the business in France.
Chicago-based Mondelēz International Inc. had 2021 net revenues of approximately $29 billion. It is known for many brands, including Oreo, belVita and LU biscuits, Cadbury Dairy Milk, Milka and Toblerone chocolate.
Perfetti Van Melle is a private company that manufactures and distributes confectionery and chewing gum in more than 150 countries. It has multiple internationally recognized brands, including Mentos, Chupa Chups, Brooklyn, Vivident, Fruit-tella and Airheads. In 2021, Perfetti reported net revenues of approximately €2.5 billion.