Mondelez International has struck a deal to acquire US biscuit maker Tate’s Bake Shop for around US$500m.
The transaction, the first acquisition to be announced since chairman and CEO Dirk Van de Put took the Mondelez hot seat last autumn, is expected to be finalised this summer.
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Tate’s Bake Shop was set up in 2000 by Kathleen King, who remains a shareholder in the business. King sold a majority stake in Tate’s Bake Shop to private-equity firm The Riverside Company in 2014.
Van de Put described Tate’s Bake Shop as “a great strategic fit” for Oreo owner Mondelez.
“With a unique and authentic brand and truly delicious products, this acquisition gives us an attractive entry point into the fast growing premium cookie segment. Tate’s has demonstrated exceptional and very profitable growth.”
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Maura Mottolese, who joined Tate’s Bake Shop as its CEO in 2014, said Mondelez’s backing would help the business boost its distribution.
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By GlobalData“We’ll have the opportunity to take Tate’s to the next level and offer our cookies and baked treats to many more consumers across North America,” she said.
Mondelez said it would run Tate’s Bake Shop as a “separate standalone business”, which the snacks giant claimed would “nurture its entrepreneurial spirit and maintain the authenticity of the brand while providing resources to accelerate growth.” Tate’s Bake Shop will continue to manufacture all its products at its current manufacturing facility, Mondelez added.
