Mondelēz International has on Monday announced that it has completed the sale of its developed-market gum business in the US, Canada and Europe, excluding Portugal, to Perfetti Van Melle Group.
The Portugal portion of the business is being retained by Mondelēz pending regulatory clearance from the Portuguese Competition Authority, which the businesses expect will be forthcoming in the near term.
Mondelēz in December last year entered into agreements to sell the business for $1.35 billion (£1.11bn) as part of its portfolio reshaping strategy, as it continues striving to deliver 90 percent of revenue in its core categories of chocolate, biscuits and baked snacks.
The sale includes manufacturing facilities in Rockford, US, and Skarbimierz, Poland, and the gum brands Trident, Dentyne, Stimorol, Hollywood, V6, Chiclets, Bubbaloo and Bubbalicious in the US, Canada and Europe, as well as European candy brands including Cachou Lajaunie and La Vosgienne.
Mondelēz continues to operate its gum business outside the US, Canada and Europe, led by Stride in China, as well as all of its other candy brands and products.
“As we continue accelerating growth to become the global snacking leader in chocolate, biscuits and baked snacks, we are pleased to transition our developed market gum business to a global, privately owned, values-driven company with a strong and proven track record of brand investment and innovation,” said Dirk Van de Put, chairman and chief executive of Mondelēz International.
“We are incredibly proud of the talented colleagues who made these brands so successful, and we wish them all the best as they join the Perfetti Van Melle team.”
Egidio Perfetti, chairman of Perfetti Van Melle Group, commented: “This acquisition aligns perfectly with our strategic goal of becoming a global leader in gum, our chosen focus.
“We expect to further bolster our product portfolio, manufacturing capacity, market distribution and financial results, effectively doubling our size in North America and increasing our reach in Europe, serving more consumers with our well-loved brands. With a passion for gum, our strong innovative background and family history, we are very pleased and proud to welcome the new people, brands and plants that have joined us today.”