Mondelez in Discussions to Acquire Snackworks

AVI Ltd. recently confirmed it’s in talks with Chicago-based Mondelez Worldwide relating to a possible acquisition of AVI’s Snackworks enterprise. AVI had hinted at a possible sale of the Snackworks enterprise since September however had not named any potential patrons.

“The corporate advises shareholders that it has progressed discussions with Mondelez Worldwide LLC relating to the potential acquisition of AVI’s Snackworks division,” AVI stated.

AVI’s Snackworks division gives a full vary of candy and savory biscuits, baked and fried snacks underneath the Bakers, Baumann’s, Pyotts, Provita, Baker Road Snacks and Willards manufacturers.

Based mostly in Bryanston, Johannesburg, Snackworks has manufacturing amenities in Isando, Johannesburg; Rosslyn, Pretoria; and Westmead, Durban. The division generated income of roughly USD270m in the year ended June 30, which equates to about 32% of AVI’s group income.

Mondelez has not commented on a possible acquisition however has been lively in increasing its snacks enterprise. The corporate earlier this year moved deeper into the worldwide baking enterprise with the acquisition of Chipita SA, a quickly rising world baker of packaged muffins and pastries. Based mostly in Athens, Chipita generated gross sales of about USD580m in 2020. The corporate’s merchandise embody croissants, bagel chips, cake bars, biscuits and spreads bought largely underneath the 7Days, Chipicao and Fineti manufacturers.