GREECE – Mondelēz International, an American multinational confectionery and snack food company,  has agreed to acquire Chipita, a manufacturer of croissants and baked snacks in central and eastern Europe, for $2 billion.

Based in Athens, Greece, Chipita manufactures a range of croissants and baked snacks – including cakes, biscuits and spreads – under its brands 7Days, Chipicao and Fineti.

The company’s baked foods are produced in 13 manufacturing plants spread across Europe and distributed to more than 56countries.

The Netherlands, Greece, Germany, Bulgaria, Austria, United Kingdom, Poland, Russia, Romania, Turkey, Slovakia and Switzerland are some of the countries where Chipta has manufacturing facilities.

In 2020, Chipita recorded annual revenues of approximately $580 million, according to a statement from Mondelēz.

The owner of Oreo and Cadbury brands says the deal with Chipita will enable it to meet growing consumer demand for the baking products segment including biscuits, cake and pastry.

According to Expert Market Research, the global bakery products market reached a value of almost US$507.38 billion in the year 2020 and is further expected to grow at a CAGR of 2.5% between 2021 and 2026 to reach a value of almost US$574.05 billion by 2026.

The bakery products market is driven by growing awareness of the health concerns associated with the ingredients used in bakery products, the market research firm notes.

The acquisition builds on Mondelez’s expansion into the fast-growing snacking segment, following the purchase of UK performance nutrition brand Grenade, premium cracker company Gourmet Food Holdings, and plant-based snack brand Hu.

“Welcoming Chipita’s delicious pastry products into the Mondelēz International family advances our strategy to become the global leader in broader snacking,” said Dirk Van de Put, chairman and CEO of Mondelēz International.

“Their iconic brands and significant scale across so many attractive geographies make them a strong strategic complement to our existing portfolio and future growth ambitions in Europe and beyond.”

The acquisition also gives Mondelēz access to Chipita’s distribution network capabilities in central and eastern Europe, increasing its presence in the regions.

According to Mondelēz, the transaction could also lead to innovation and co-branding opportunities as it looks to bring its chocolate brands to new categories. 

The transaction is subject to certain antitrust approvals and closing conditions.

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