Mondelez International is buying Clif Bar & Company for $2.9 billion, building on the Chicago-based company’s global snack bar business.
Clif Bar, which was founded in 1992 and is privately held, makes high-protein and low glycemic snack bars marketed toward athletes and outdoor enthusiasts. Beyond its Clif Bar brand, it also makes Luna bars and Clif Kid bars.
The acquisition creates a $1 billion global snack bar business for Oreo-maker Mondelez. The company already has refrigerated snacking business Perfect Snacks in the U.S. and performance nutrition business Grenade in the U.K.
“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,” Mondelez CEO Dirk Van de Put said in a news release.
Further payments may be possible, contingent on events that weren’t specified—a clause known as an additional contingent earnout consideration, the statement showed.
Clif will keep operating from its headquarters in Emeryville, Calif. It will also continue manufacturing its products at facilities in Twin Falls, Idaho, and Indianapolis, Indiana. The deal will help Clif expand its sales distribution, gain new customers and accelerate growth, Clif CEO Sally Grimes said in the release.
The deal is subject to regulatory review, and is expected to close in the third quarter. Besides the $2.9 billion acquisition price, the deal also comes with an additional contingent earnest consideration. No additional details on that were disclosed.
Mondelez rode the pandemic snacking boom to boost online sales of cookies and candy, and in November said the retail trend will continue to grow even after mobility restrictions had been lifted as people became accustomed to using their digital devices to shop for food.
—Bloomberg News contributed to this report.
