Mondelēz International announced it has entered into an agreement with Grupo Bimbo to acquire its confectionery business, Ricolino, for approximately US$ 1.3 billion. Ricolino is a growing business with a leading confectionery position in Mexico. The acquisition will transform Mondelēz International’s business in the high-priority Mexico market to accelerate growth and scale in core snacking categories.
With approximately US$ 500 million in annual revenue, Ricolino employs close to 6,000 associates, has four manufacturing facilities and distributes its products to several channels, including traditional trade, supermarkets, convenience stores and others. Its iconic brands Ricolino, Vero, La Corona and Coronado are leaders in lollipops, marshmallows, chocolates, gummies and other confectionery products.
The acquisition will double the size of Mondelēz Mexico’s business and provide an attractive entry point into the chocolate category, while expanding the company’s presence in snacking. It also provides significant opportunities for synergies and accelerated growth. For Grupo Bimbo, the leading baking company in the world, this transaction will enable focus on its grain-based baking and snacks businesses.
“This acquisition will provide a step change for our business in Mexico, an important growth market for us, more than tripling our routes to market and growing our position in core snacking categories,” said Dirk Van de Put, chairman and chief executive officer of Mondelēz International. “We are thrilled to welcome Ricolino’s talented people and amazing brands into the Mondelēz International family.”
Many of Ricolino’s chocolate and candy brands have more than 50 years’ history in Mexico. Today, the company’s more than 2,100 direct store delivery routes reach 440,000 traditional trade outlets, providing significant scale and broad brand availability.
“We ventured into the confectionery industry with the establishment of Ricolino in 1970; After 52 years of growth and progress, it is the industry leader in Mexico. We truly recognize the Ricolino family for this amazing accomplishment and are deeply thankful for their commitment and hard work. I’m confident that Mondelēz International will leverage these amazing brands to a much higher position,” said Daniel Servitje, chairman and chief executive officer of Grupo Bimbo.
“I want to take the opportunity to thank all of our associates for their dedication and commitment. They have given their best and I feel very proud of them,” said Fernando Lerdo de Tejada S, president of Ricolino.
The acquisition of Ricolino will build on Mondelēz International’s continued prioritization of fast-growing snacking segments in key geographies. In January 2022, Mondelēz International closed on its acquisition of Chipita SA, the leader in the Central and Eastern European snack-size cakes and pastries category. This followed a year of growth in 2021 supported by the acquisition of Grenade, a leading UK performance nutrition company; Gourmet Food Holdings, a leading Australian food company in the attractive premium biscuit and cracker category; and Hu, a well-being snacking company in the United States.
The transaction, which is subject to customary closing conditions, will be funded through an issuance of debt and cash on hand and is expected to close in late Q3 or early Q4 2022.