Mondelēz International has announced the sale of its gum business in Canada, the US and Europe to Perfetti Van Melle.
The company will retain its emerging market gum business across Latin America, Asia, the Middle East and Africa.
The purchase price is $1.35 billion or 15 times equivalent to estimated current year EBITDA.
The sale is set to advance Mondelēz’s portfolio reshaping strategy, announced in May 2022, which aims to accelerate growth and reinvestment in its core biscuit, chocolate and baked snacks categories, from which it plans to generate 90% of revenue.
Dirk Van de Put, chairman and CEO of Mondelēz, said: “As we continue progressing our ‘Vision 2030’ focus and acceleration strategy, doubling down on our core snacking categories, we are pleased to transition our developed market gum business to a values-led, family-owned company whose portfolio is a strategic fit, and where our brands and people can thrive”.
The sale includes manufacturing facilities in Rockford, Illinois, and Skarbimierz, Poland, as well as the gum brands Trident, Dentyne, Stimorol, Hollywood, V6, Chiclets, Bubbaloo and Bubblicious in the US, Canada and Europe, and the European confectionery brands Cachou Lajaunie, Negro and La Vosgienne.
Egidio Perfetti, chairman of Perfetti Van Melle, commented: “Perfetti Van Melle will be an excellent home for the management team and employees of Mondelēz International’s gum business in North America and Europe”.
The company’s vice chairman, Daniele Perfetti, added: “We have long admired the product and brand portfolio of the gum business and look forward to combining them with the Perfetti Van Melle brand family”.
The transaction, expected to close in Q4 of 2023, is subject to customary closing conditions. The deal includes the business in the US, Canada and Europe, excluding France. The parties have entered into exclusive arrangements for the sale of the business in the latter market, Mondelēz said.
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