Mondelez Acquires Greek-founded Chipita for USD2bn

Mondelez International Inc. announced its USD2bn acquisition of Central and Eastern European baked goods company Chipita S.A. on Wednesday. The deal will add a new category of goods to the Mondelez portfolio, and expand the company’s geographic reach.

Mondelez will fund the acquisition with a combination of new debt and cash on hand. It expects the purchase to immediately contribute to profit growth. The deal is expected to be accretive at the closing. Chipita, a 40-year-old company that launched in Greece, generated USD580m in revenue in 2020. According to a statement, Chipita has “a proven track record of consistent growth from its portfolio of croissant and baked snack brands.”

Chipita brands include 7Days, Chipicao, and Fineti. The acquisition doesn’t include a meat processing business, P.G. Nikas S.A, or Chipita’s minority interest in an Indian joint venture.

The company, which is based in Greece, employs about 5,100 workers and produces in 13 plants. Its goods are delivered to more than 50 countries. Rothschild & Co. advised Chipita on the deal. So far in 2021, Mondelez has also acquired U.K. nutrition company Grenade, Australian cracker company, Gourmet Food Holdings, and U.S. snacking company Hu.