The owner of British chocolate brand Cadbury has announced that it is buying US energy bar maker Cliff Bar & Co for $2.9bn (£2.4bn).
Mondelez International – which also owns Oreo, Toblerone and Milca – says the deal will help drive its plans to “lead the future of snacking”. The food and drinks giant also says it will continue to make Cliff’s products at its facilities in Idaho and Indiana.
In March, Mondelez warned about the impact of rising production costs.
In a statement on Monday, the American confectionery maker said the buyout would increase the value of its snack bar business to more than $1 billion. It said that after the transaction is completed later this year, it will continue to operate Cliff’s business from Emeryville, California, where the firm is headquartered.
“We are thrilled to welcome Clif Bar & Company’s iconic brands and passionate employees into the Mondelez International family,” Mondelez’s chairman and chief executive Dirk Van de Put said.
“This transaction further advances our ambition to lead the future of snacking by winning in chocolate, biscuits and baked snacks, as we continue to scale our high-growth snack bar business,” he added.
Cliff was founded three decades ago by Gary Erickson, who came up with the idea to build an energy bar to last a 175-mile bike ride, according to the company’s website.
The bar originated “after countless hours in mom’s kitchen”, and was named after Mr Erikson’s father and “childhood hero” Clifford. Cliff’s chief executive Sally Grimes said Mondelez was “the right partner at the right time to support Cliff’s in our next chapter of growth”.
Mondelez – which has other global brands including Dame, Ritz and Belvita – reported net revenue of nearly $29bn last year.