Mondelēz International announced it has entered into definitive agreements to sell its developed market gum business in the U.S., Canada and Europe to Perfetti Van Melle Group, a leading European gum and confectionery maker for $1.35 billion or 15 times equivalent to estimated current year EBITDA.
The sale includes manufacturing facilities in Rockford, Illinois, and Skarbimierz, Poland, and the gum brands Trident, Dentyne, Stimorol, Hollywood, V6, Chiclets, Bubbaloo and Bubblicious in the United States, Canada and Europe, as well as the European candy brands Cachou Lajaunie, Negro, and La Vosgienne.
According to the announcement, the divestiture advances the company’s portfolio reshaping strategy, enabling greater focus on growth and reinvestment in its core chocolate, biscuit and baked snacks categories.
Mondelēz International will continue to operate its gum business outside the United States, Canada and Europe, led by Stride in China, as well as all of its other candy brands and products.
The transaction, which is subject to customary closing conditions, is expected to close in Q4 of 2023.
“As we continue progressing our Vision 2030 focus and acceleration strategy, doubling down on our core snacking categories, we are pleased to transition our developed market gum business to a values-led, family-owned company whose portfolio is a strategic fit, and where our brands and people can thrive,” Dirk Van de Put, chairman and CEO, Mondelēz International, said in the announcement.
The acquisition of Mondelēz International’s developed market gum business complements the Perfetti Van Melle portfolio, including iconic global brands such as Mentos, Chupa Chups and Alpenliebe.
“Perfetti Van Melle will be an excellent home for the management team and employees of Mondelēz International’s gum business in North America and Europe,” Egidio Perfetti, chairman of Perfetti Van Melle Group, said in the announcement.
The definitive agreements cover the sale of the business in the United States, Canada and Europe excluding France. The parties have entered into exclusive arrangements for the sale of the business in France.