DEERFIELD, Ill., Feb. 27, 2015 /PRNewswire/ -- Mondelez International, Inc. today announced that, as part of its ongoing efforts to further focus its portfolio on snacking products, it has reached an agreement to sell its 50 percent interest in Ajinomoto General Foods, Inc. (AGF) to its joint venture partner, Ajinomoto Co., Inc. AGF manufactures and sells instant, ground and liquid coffee products as well as other beverages in Japan under brands mainly licensed by Mondelez International, including Blendy and Maxim.
In May 2014, Mondelez International announced its intention to combine its coffee business with D.E Master Blenders 1753 to create the world's leading pure-play coffee company, to be named Jacobs Douwe Egberts (JDE). As part of this, Mondelez International's Japan joint-venture partner, Ajinomoto, was invited to join JDE. During these discussions, Ajinomoto expressed a strong interest in acquiring Mondelez International's shares in AGF.
Upon closing of the stock purchase agreement, Mondelez International will receive pre-tax cash proceeds of ¥27 billion. The AGF transaction is scheduled to close by the end of April 2015, subject to limited closing conditions. The stock purchase agreement with Ajinomoto will not have any impact on the proposed JDE transaction, which is expected to close later this year.
In 2013, AGF generated more than ¥100 billion1 in net revenue. It has 700 full-time employees and two factories in Gunma and Suzuka, Japan.
About Mondelez International
Mondelez International, Inc. (NASDAQ: MDLZ) is a global snacking powerhouse, with 2014 revenue of $34 billion. Creating delicious moments of joy in 165 countries, Mondelez International is a world leader in chocolate, biscuits, gum, candy, coffee and powdered beverages, with billion-dollar brands such as Cadbury, Cadbury Dairy Milk and Milka chocolate, Jacobs coffee, Oreo, LU and Nabisco biscuits, Tang powdered beverages and Trident gum. Mondelez International is a proud member of the Standard and Poor's 500, NASDAQ 100 and Dow Jones Sustainability Index. Visit www.mondelezinternational.com and www.facebook.com/mondelezinternational.
This press release contains a number of forward-looking statements. Words, and variations of words, such as "will," "expect," "intend" and similar expressions are intended to identify these forward-looking statements, including, but not limited to, statements about: the timeframe for completing and proceeds to be received in the transaction; and our entry into and the timeframe for completing the coffee transaction. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond Mondelez International's control, which could cause Mondelez International's actual results to differ materially from those indicated in these forward-looking statements. Such factors include, but are not limited to, the risk that the parties will fail to successfully complete these transactions on the anticipated timeframes. Please also see Mondelez International's risk factors, as they may be amended from time to time, set forth in Mondelez International's filings with the SEC, including its most recently filed Annual Report on Form 10-K. Mondelez International disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation.
1 Net revenue adjusted to U.S. GAAP