U.S. conglomerate Mondelēz International acquired Clif Bar & Company, Ricolino and Chipita Global S.A. in the first half of 2002.
On June 20, 2022, the company announced an agreement to acquire Clif Bar & Company (Clif Bar), a leading U.S. manufacturer of nutritious energy bars with organic ingredients, for a purchase price of approximately US$2.9 billion, subject to closing purchase price adjustments.
The acquisition of Clif Bar includes a contingent consideration arrangement that may require the company to pay additional consideration to the sellers for achieving certain revenue and profit targets in 2025 and 2026 that exceed the company’s base financial projections for the business implicit in the initial purchase price.
In addition, potential payments range from zero to a maximum total of $2.4 billion, with higher payments requiring the achievement of targets that generate rates of return in excess of the base financial projections.
In connection with this transaction, the company expects to generate a significant tax benefit over time from the amortization of acquisition-related intangibles.
The transaction, which will be financed through a combination of debt and cash on hand, is subject to relevant antitrust approvals and closing conditions and is expected to close in the third quarter of 2022.
The company incurred acquisition-related costs of $4 million in the three and six months ended June 30, 2022.
Clif Bar
On April 24, 2022, the company entered into an agreement with Grupo Bimbo to acquire Ricolino, its confectionery business located primarily in Mexico, for a purchase price of approximately $1.3 billion, subject to closing purchase price adjustments.
The transaction, which will be financed through a combination of debt and available cash, is subject to applicable antitrust approvals and closing conditions and is expected to close late in the third quarter or early in the fourth quarter of 2022.
During the second quarter of 2022, Mondelēz International incurred acquisition-related costs of $1 million in the three and six months ended June 30, 2022.
Snacks
Finally, on January 3, 2022, the company acquired 100% of the equity of Chipita Global S.A. (Chipita), a leading croissant and baked snacks company in Central and Eastern European markets.
The acquisition of Chipita provides a strategic complement to the company’s existing portfolio and advances its strategy to become the world’s broadest snack leader.
The acquisition added incremental net revenues of $180 million for the three months and $332 million for the six months ended June 30, 2022, and operating income of $10 million for the three months and $14 million for the six months ended June 30, 2022.
Mondelēz International incurred acquisition-related costs of $21 million in the six months ended June 30, 2022 and $6 million in the three and six months ended June 30, 2021.
Also, the company incurred acquisition integration costs of $36 million in the three months and $71 million in the six months ended June 30, 2022.
