Mondelēz International on Monday said it has entered into definitive agreements to sell its developed-market gum business in the US, Canada and Europe to Perfetti Van Melle Group, a leading European gum and confectionery maker, for $1.35 billion (£1.11bn) or 15 times equivalent to estimated current year EBITDA.
The company in May has announced plans to sell its chewing gum business in developed markets, as well as its Halls cough drop brand, as the company focuses on chocolates and snacks.
The sale includes manufacturing facilities in Rockford, US and Skarbimierz, Poland and the gum brands Trident, Dentyne, Stimorol, Hollywood, V6, Chiclets, Bubbaloo and Bubblicious in the US, 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 outside the three markets, led by Stride in China, as well as all of its other candy brands and products.
“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,” said Dirk Van de Put, chairman and chief executive at Mondelēz International.
Perfetti Van Melle said the acquisition complements its portfolio—including iconic global brands such as Mentos, Chupa Chups and Alpenliebe.
“Perfetti Van Melle will be an excellent home for the management team and employees of Mondelēz’s gum business in North America and Europe,” said Egidio Perfetti, chairman of Perfetti Van Melle Group.
Daniele Perfetti, vice chairman of Perfetti Van Melle Group, 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.”
Mondelēz International’s Vision 2030 strategy aims to generate 90 per cent of revenue in chocolate and biscuits, including baked snacks—categories identified with significant growth opportunities for the company —up from 59 per cent in 2012 and 80 per cent today.
The transaction, which is subject to customary closing conditions, is expected to close in final quarter of 2023.
