Mondelēz International has completed the sale of its developed-market gum business in the United States, Canada and Europe, excluding Portugal, to Perfetti Van Melle Group.
Mondelēz will retain the Portuguese portion of the business until it receives regulatory clearance from the country's competition authority, the company noted.
The divestiture is part of the company's strategy to reshape its product portfolio as it seeks to focus on core categories comprising chocolate, biscuits and baked snacks.
The deal, valued at $1.35 billion (€1.3 billion), was first announced in December of last year.
Egidio Perfetti, chair of Perfetti Van Melle Group said, "This acquisition aligns perfectly with our strategic goal of becoming a global leader in gum, our chosen focus.
"We expect to further bolster our product portfolio, manufacturing capacity, market distribution and financial results, effectively doubling our size in North America and increasing our reach in Europe, serving more consumers with our well-loved brands."
The Deal
The transaction includes manufacturing facilities in Rockford, Illinois, and Skarbimierz, Poland, and the gum brands Trident, Dentyne, Stimorol, Hollywood, V6, Chiclets, Bubbaloo and Bubbalicious in the United States, Canada and Europe as well as European candy brands Cachou Lajaunie and La Vosgienne.
Mondelēz added that it will continue to operate its gum business outside the United States, Canada and Europe, led by Stride in China, as well as all other candy brands and products.
“As we continue accelerating growth to become the global snacking leader in chocolate, biscuits and baked snacks, we are pleased to transition our developed market gum business to a global, privately owned, values-driven company with a strong and proven track record of brand investment and innovation,” commented Dirk Van de Put, chairman and CEO of Mondelēz International.
