Mondelez Agrees To Acquire Confectionery Company Ricolino For $1.3B

• Mondelez International Inc (NASDAQ:MDLZ) has agreed to acquire Grupo Bimbo’s confectionery business, Ricolino, for $1.3 billion.
• The company expects the acquisition to double the size of its Mexico business and provide an attractive entry point into the chocolate category while expanding its presence in snacking. 
• Ricolino’s annual revenue is about $500 million. It employs 6,000 associates and has four manufacturing facilities.
• Ricolino’s chocolate and candy brands, including Ricolino, Vero, La Corona, and Coronado, complement the MDLZ portfolio.
• The deal is expected to close in the late third quarter or early fourth quarter.
• Mondelez plans to fund the deal by issuing debt and cash on hand. It held $3.5 billion in cash and equivalents as of December 31, 2021.
• Price Action: MDLZ shares are trading higher by 0.17% at $65.17 on the last check Monday.