Mondelez () - adjusted on Mexico and expanded its expanded beyond the United States, agreeing to pay $1.3 billion for Ricolino, the maker of chocolate and candy, from Grupo Bimbo. BMBOY
Grupo Bimbo, a Mexican-based bakery company, has been established in the world's largest baking industry, producing bread, cakes, toast, and tortillas, among others. Mondelez is the Chicago producer of Oreo cookies, Trident chewing gum, chocolates, and other snack products.
Ricolino, which was founded in 1970, claims an annual revenue of over $500 million. It employs over 6,000 people and operates four manufacturing facilities, and distributes confections under brands like Ricolino, Varo, La Corona, and Coronado.
Mondelez's Mexican business will be doubled, converting it into chocolate in the United States, and expanding its snack business there. Grupo Bimbo's companies believe the deal will help the company sharpen its focus on its grain-based baking and snacks products.
Mondelez is the latest company to build on its success with fast-growing snack businesses across the world.
In January Mondelez, the company from Athens, began selling snack cakes and pastries in Central and Eastern Europe.
Grenade, a nutritional company in the United Kingdom, was established last year by Gourmet Food Holdings, which includes biscuits and crackers, and Hu.
The purchase of Ricolino is subject to standard closing conditions. Mondelez said it would fund the transaction by ecstatic debt and using cash on hand. The company anticipates to close the transaction late in the third quarter or early in the fourth.