The manufacturer of Oreos, Mondelez International Inc (MDLZ.O), announced on Monday that it had reached an agreement to sell Perfetti Van Melle Group its gum business in the US, Canada, and Europe, including brands like Trident and Dentyne, for USD 1.35 billion.
After demand suffered significantly during the Covid-19 lockdowns, Mondelez put its developed markets gum unit—which also includes brands like Bubbaloo and Bubblicious—under strategic review. As a result, the company will continue to operate its gum business outside North America, Western Europe, and Australia.
The manufacturing facilities in Rockford, Illinois, and Skarbimierz, Poland, which were formerly owned by Mondelez, will also be purchased by Perfetti Van Melle, the European gum and confectionery manufacturer behind brands including Mentos, Alpenliebe, and Chupa Chups.
After making a number of acquisitions over the past year, Mondelez has been reorganising its portfolio in order to generate 90 per cent of its revenue from chocolate and biscuits.
Earlier this year, the creator of Toblerone chocolate paid USD 2.9 billion for the energy bar manufacturer Clif Bar & company and USD two billion for the Greek food company Chipita S.A.
In the fourth quarter of 2023, Mondelez anticipates concluding the agreement, which does not include the sale of its French operations.
According to the agreement, the parties have made exclusive arrangements for the sale of the company in the nation.
