Chocolate and confectionery maker Mondelēz International said Monday it had snapped up Ricolino, from Mexico’s Grupo Bimbo, for about $1.3 billion.
After 52 years of the foundation of Ricolino, Bimbo gets rid of brands such as Kranky, Paleta Payaso, Duvalín, Panditas, among others, to join forces in its bakery and snack industries, the company said in a statement.
This sale agreement represents, for its part, an opportunity for Mondelēz International to double the size of its business in Mexico and an attractive entry point to the chocolate category in the country. In 2021 alone, Ricolino products recorded net sales of 10,147 million pesos.
“We entered the confectionery industry with the founding of Ricolino in 1970; Today, 52 years later, it is the leader in the industry in Mexico. We deeply acknowledge the Ricolino family for this great achievement and are very grateful for their commitment and hard work. I fully trust that Mondelēz will promote these excellent brands and accelerate their growth”, said Daniel Servitje, President and CEO of Grupo Bimbo.
The American company will build a business that currently employs 6,000 workers, with four distribution plants and that markets its products under the Ricolino, Vero, La Corona and Coronado brands in Mexico and 17 other countries.
“This transaction will provide a strong boost for our business in Mexico, an important growth market for us, by tripling our routes to market and increasing our position in the main snack categories,” said Dirk Van De Put, President and CEO of Mondelēz. International.
For its part, Grupo Bimbo will use the proceeds derived from this transaction for debt payment, capital investment and other corporate purposes. In 2022, Bimbo plans to invest approximately 750 million dollars in Mexico.
This operation is still subject to the corresponding approvals, including the regulatory approvals that are applicable in Mexico, such as that of the Federal Economic Competition Commission (COFECE), among others.