Mondelēz International announced yesterday that it has entered into agreements to sell its chewing gum business in the US, Canada and Europe to Dutch confectionery firm Perfetti Van Melle for $1.35bn.
The move is part of the company’s “portfolio reshaping” strategy, which it outlined earlier this year. It aims to generate 90% (from 80% currently) of its revenue from its core chocolate, biscuits, and baked snacks categories by 2030. This has been bolstered by a series of acquisitions over the last couple of years.
The gum sale includes manufacturing facilities in the US and Poland, and brands Trident, Dentyne, Stimorol, Hollywood, V6, Chiclets, Bubbaloo and Bubblicious in the US, Canada and Europe, as well as the European brands Cachou Lajaunie, Negro, and La Vosgienne. Mondelēz will continue to operate its gum business outside the US, Canada and Europe, led by Stride in China, as well as all of its other candy brands and products.
“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,” said Dirk Van de Put, Chairman and CEO.
For Perfetti Van Melle, the acquisition will complement its existing portfolio which includes brands such as Mentos, Chupa Chups and Alpenliebe.
“We have long admired the product and brand portfolio of the gum business and look forward to combining them with the Perfetti Van Melle brand family,” said Daniele Perfetti, Vice Chairman of Perfetti Van Melle Group.
The transaction is expected to close in the fourth quarter of 2023.
