MEXICO – American multinational confectionery company Mondelēz International is set to acquire mexican confectioner Ricolion from Grupo Bimbo for approximately US$1.3 billion.
With approximately US$500 million in annual revenue, Ricolino is a growing business with a leading confectionery position in Mexico.
The company employs close to 6,000 associates, has four manufacturing facilities, and distributes its products to several channels, including traditional trade, supermarkets, convenience stores and others.
Its iconic brands include Ricolino®, Vero®, La Corona® and Coronado® are leaders in lollipops, marshmallows, chocolates, gummies and other confectionery products.
Grupo Bimbo, the leading baking company in the world, is reportedly selling the business to focus on its grain-based baking and snacks businesses.
Mondelēz says the acquisition will transform its international business in the high-priority Mexico market to accelerate growth and scale in core snacking categories.
The acquisition will double the size of Mondelēz Mexico’s business, significantly expanding the company’s presence in snacking and provides excellent opportunities for synergies and accelerated growth.
Many of Ricolino’s chocolate and candy brands have more than 50 years’ history in Mexico and thus provide an attractive entry point into the chocolate category.
Expanding in Mexico is timely as the Mexico confectionery and snacks segment, estimated to be worth US$40.57bn in 2022, is expected to post a compounded annual growth rate of 5.29% between 2022 and 2027, according to data from Statista
“This acquisition will provide a step change for our business in Mexico, an important growth market for us, more than tripling our routes to market and growing our position in core snacking categories,” said Dirk Van de Put, Chairman and CEO of Mondelēz International.
“We are thrilled to welcome Ricolino’s talented people and amazing brands into the Mondelēz International family.”
Today, the company’s more than 2,100 direct store delivery routes reach 440,000 traditional trade outlets, providing significant scale and broad brand availability.
“ I’m confident that Mondelēz International will leverage these amazing brands to a much higher position,” said Daniel Servitje, Chairman and CEO of Grupo Bimbo.
The acquisition of Ricolino will build on Mondelēz International’s continued prioritization of fast-growing snacking segments in key geographies.
In January 2022, Mondelēz International closed on its acquisition of Chipita S.A., the leader in the Central and Eastern European snack-size cakes and pastries category.
The transaction, which is subject to customary closing conditions, will be funded through the issuance of debt and cash on hand and is expected to close in late Q3 or early Q4 2022.
