Mondelez () - a double down on Mexico and further expanded its expansion beyond the United States, agreeing to pay $1.3 billion for Ricolino, the company's chocolate and candy, from Grupo Bimbo. BMBOY
Grupo Bimbo, a Mexican bakery business, is producing bread, cakes, toast, and tortillas, according to a total of 10,000 people. Mondelez is the Chicago producer of Oreo cookies, Trident chewing gum, chocolates, and other snack products.
Ricolino, which was established in 1970, reported an annual income of around $500 million. It employs over 6,000 people and operates four manufacturing facilities, distributes confections under brands such as Ricolino, Varo, La Corona, and Coronado.
The acquisition would double Mondelez's Mexican business, converting it into chocolate in the United States, and expanding its snack business there. Grupo Bimbo, according to the two companies, would enhance its focus on its grain-based baking and snack products.
Mondelez is the latest company to take on its collaboration with fast-growing snack businesses throughout the world.
In January Mondelez, the company based in Athens, sells snack cakes and pastries in Central and Eastern Europe.
Last year, Grenade, a nutrition company in the United Kingdom, bought biscuits and crackers from Gourmet Food Holdings, and Hu.
The purchase of Ricolino is subject to standard closing conditions. Mondelez said it would fund the transaction by sending debt and using cash on hand. The company anticipates to close the agreement late in the third quarter or early in the fourth.