Mondelēz To Acquire Clif Bar For $2.9 Billion
Food conglomerate Mondelēz International has agreed to pay $2.9 billion, with additional contingent earn out consideration, to acquire organic snack bar maker Clif Bar & Company.
Founded in 1992, Emeryville, California-based Clif is the leading protein and energy bar brand in the U.S., according to data cited by the company. Clif generated over $800 million in sales across products from its eponymous brand, as well as female-focused LUNA and Clif Kids. Under CEO Sally Grimes, the brand has begun moving outside of bars with products like CLIF Bar Thins, an exclusive with Walmart, and CLIF Pop’n Crunch with the aim of becoming a $2 billion business.
“Mondelēz International is the right partner at the right time to support Clif in our next chapter of growth,” said Grimes. “Our purposes and cultures are aligned and being part of a global snacking company with broad product offerings can help us accelerate our growth while staying true to our deeply ingrained Five Aspirations – sustaining our people, planet, community, business, and brands – five bottom lines that have grounded our company since its founding and will remain our North Star going forward.”
For Mondelēz, the deal reflects the company’s intent to grow its range of snack and bar business through M&A, having added refrigerated bar Perfect Snacks in 2019 and better-for-you chocolate and cracker brand Hu in 2021. Adding Clif brings its global snack bar business past the $1 billion mark, according to a press release.
“We are thrilled to welcome Clif Bar & Company’s iconic brands and passionate employees into the Mondelēz International family,” said Dirk Van de Put, Chairman and CEO of Mondelēz International, in a press release. “This transaction further advances our ambition to lead the future of snacking by winning in chocolate, biscuits and baked snacks as we continue to scale our high-growth snack bar business. As a leader and innovator in well-being and sustainable snacking in the U.S, Clif Bar & Company embodies our purpose to ‘empower people to snack right’ and we look forward to advancing this important work with Clif’s committed colleagues in the years ahead.”
Clif will continue to run operations from Emeryville and retain its existing manufacturing sites, according to the release. The deal is expected to be top-line accretive in year two and to create cost synergies by using Mondelēz’s infrastructure to expand distribution and enter new channels and markets.
The deal is expected to close sometime in Q3 2022.
