Mondelēz International announced yesterday that it has agreed to acquire Chipita, a leader and high-growth company in the dough and snack category in Central and Eastern Europe. Chipita, which was founded in Greece over 40 years ago, had revenues of approximately $580 million in 2020 and has a proven track record of steady growth driven by its product portfolio of croissants and dough products, including 7Days, Chipicao and Fineti. Chipita is at the forefront of development and growth in this sector in many countries, due to its strong innovation and production capabilities.
“We welcome Chipita’s delicious dough products to the Mondelēz International family. We are positive that they will give further impetus to our strategy to become a global leader in the broader snacking category”, stated Mr Dirk Van de Put, President & CEO of Mondelēz International. “Chipita’s iconic brands and significant presence in so many attractive markets are a strong strategic complement to our existing portfolio and our future growth ambitions in Europe and beyond”
Chipita & Mondelēz, a snack powerhouse
Chipita products, made in 13 factories and sold in more than 50 countries, reach two billion consumers. The acquisition will enable Mondelēz International to offer consumers a full portfolio of bakery products, including biscuits, cakes and, now for the first time, dough products, and to meet growing consumer demand for this market segment.
Chipita CEO, Mr Spyros Theodoropoulos announced: “For more than 40 years, Chipita has built on quality and innovation to create a new category of snacks that consumers all around the world have loved. I am confident that the acquisition of Chipita by Mondelēz International –one of the world’s leading snack companies– will create new prospects for its people and its products”.
Further to adding a new category to Mondelēz International’s product portfolio, this acquisition will also significantly strengthen the company’s presence in the fast-growing markets of Central and Eastern Europe where Chipita is particularly well positioned. Mondelēz International will use Chipita’s distribution network in Central and Eastern Europe to strengthen its own trading and continue to bring its brands to the region and beyond. The agreement will also provide opportunities for innovation and brand combination by putting Mondelēz International’s iconic chocolate brands into new categories.
The acquisition price amounts to approximately two billion dollars and is subject to certain adjustments upon closing of the transaction. The amount was financed through a combination of a new loan issue and existing liquid assets. Mondelēz International expects the transaction to contribute to immediate earnings per share growth. The transaction is subject to the approval from competition authorities and the fulfilment of closing conditions. The agreement does not include Nikas SA nor the minority rights in the Chipita joint venture in India.
