Mondelez International is adding to its snacks portfolio with the acquisition of US energy bar business Clif Bar & Company for US$2.9bn.
Cadbury and Oreo owner Mondelez said the deal will see it become a $1bn global snack bar player and continues its expansion in baked snacks.
Clif Bar, based in Emeryville, California, is a family- and employee-owned business. It owns the Clif, Clif Kid and Luna brand energy bars, which are made with organic ingredients.
“This acquisition also advances the company’s strategy to reshape its portfolio to sustain higher long-term growth,” it said.
Mondelez CEO Dirk Van de Put added: “This transaction further advances our ambition to lead the future of snacking by winning in chocolate, biscuits and baked snacks as we continue to scale our high-growth snack bar business.
Sally Grimes, the former Tyson Foods executive who became Clif Bar CEO in 2020, said: “Mondelez International is the right partner at the right time to support Clif in our next chapter of growth.”
Mondelez will continue to operate the Clif Bar business from its California headquarters and will also continue to manufacture its products in its facilities in Twin Falls, Idaho, and Indianapolis, Indiana.
The Clif Bar portfolio is centred on snacks, with a smaller presence in areas including cereal. Before Christmas, the company made a notable move into another category, launching a range of pet food.
Earlier in 2021, Clif Bar announced it was axing more than 100 posts with an eye on growing sales. CEO Sally Grimes said at the time the company would cut around 125 positions, while adding more roles to the business.
The move for Clif Bar is Mondelez’s second acquisition of 2022. In April, it announced a deal to buy Mexico-based confectionery company Ricolino from Grupo Bimbo.
In May, the Lu biscuits owner set out plans to sell its cough sweets brand Halls and some of its chewing gum assets.