GLOBAL – Global snack and confectionery giant, Mondelēz International has agreed to offload its gum business in Canada, the US, and Europe to a leading European gum and confectionery company, Perfetti Van Melle for US$1.35 billion or 15 times equivalent to the estimated current year EBITDA.

The divestiture advances the company’s portfolio-reshaping strategy, which entails doubling down on its dominant position in its core chocolate, biscuit, and baked snacks categories through reinvestment while positioning its business for further growth.

The sale of Mondelēz’s gum business in developed markets has been rumored for years and the company finally announced it was pursuing a divestiture in May after completing a strategic review of the division.

A sale of the business, which accounts for a small fraction of Mondelez’s total revenue, will allow the company to let go of slower-growing assets compared to the rest of its portfolio.

It will also give the company cash to spend on innovation, paying off prior deals, or purchasing other snacking brands.

The sale includes manufacturing facilities in Rockford, IL, and Skarbimierz, Poland, and the gum brands Trident, Dentyne, Stimorol, Hollywood, V6, Chiclets, Bubbaloo, and Bubblicious in the United States, Canada, and Europe, as well as the European candy brands Cachou Lajaunie, Negro, and La Vosgienne.

Mondelēz International will continue to operate its gum business in emerging market gum business across Latin America, Asia, the Middle East, and Africa.

The transaction, which is subject to customary closing conditions, is expected to be completed in the fourth quarter of 2023 and will complement Perfetti Van Melle’s existing portfolio, which includes several global brands, such as Mentos.

In 2021, Perfetti Van Melle, a private company that manufactures and distributes confectionery and chewing gum in more than 150 countries, reported net revenues of approximately €2.5 billion.

Mars to acquire whole-fruit snacking brand Trü Frü

Meanwhile, confectionery giant Mars has signed an agreement to acquire US-based whole-fruit snacking brand Trü Frü, which was founded in 2017 by CEO Brian Neville, president Taz Murray, and COO Brandon O’Brien.

Andrew Clarke, global president at Mars Snacking, noted that Trü Frü is a perfect complementary fit for Mars’ health and wellness portfolio.

With the company’s capabilities, Mr. Clarke noted the brand will help the brand strengthen its operations, broaden distribution and accelerate growth.

Trü Frü will operate as a separate business within Mars and will continue to be led by the current CEO, Neville.

The transaction is subject to customary regulatory approvals and is expected to close in the first quarter of 2023.

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