Chicago-based snack food giant Mondelez International said Monday it has agreed to acquire Clif Bar & Company, the California-based maker of Clif, Clif Kid and Luna brand energy bars.
The deal was valued at $2.9 billion and includes “additional contingent earnout consideration,” Mondelez said in a news release.
“We are thrilled to welcome Clif Bar & Company’s iconic brands and passionate employees into the Mondelēz International family,” said Dirk Van de Put, chairman and CEO of Mondelez International, in a statement. “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.”
In a statement, Clif Bar & Company CEO Sally Grimes said the acquisition would help Clif Bar “accelerate our growth” while sustaining its “people, planet, community, business and brands.”
“Mondelez International is the right partner at the right time to support Clif in our next chapter of growth,” Grimes said.
Mondelez spokesperson Tracey Noe said the company saw “great opportunity” to expand Clif’s reach in the U.S., Canada and other international markets.
“After the deal closes, we plan to use our global resources to support the brand, starting in North America,” Noe said.
In a news release, the company said the acquisition was subject to customary regulatory review and was expected to close in the third quarter. The acquisition requires Clif Bar & Company to convert to a limited liability company, it said.
Clif Bar & Company founders will not have equity in the company after the deal closes, Noe said. “The sellers will have a performance driven earnout structure” based on Clif Bar hitting agreed upon financial targets, Noe said. Mondelez said it would continue to operate Clif Bar from its headquarters in Emeryville, California.
The maker of snack food brands like Oreo and Ritz, Mondelez announced plans to move its global headquarters from Deerfield, Illinois to Chicago in 2019.
