Mondelēz International announced it has entered into an agreement with Grupo Bimbo to acquire its confectionery business, Ricolino, for approximately $1.3 billion USD.

Ricolino is a growing business with a leading confectionery position in Mexico. The acquisition will transform Mondelēz International’s business in the high-priority Mexico market to accelerate growth and scale in core snacking categories.

With approximately $500 million USD in annual revenue, Ricolino employs close to 6,000 associates, has four manufacturing facilities and distributes its products to several channels, including traditional trade, supermarkets, convenience stores and others. Its iconic brands Ricolino®, Vero®, La Corona® and Coronado® are leaders in lollipops, marshmallows, chocolates, gummies and other confectionery products.

The acquisition will double the size of Mondelēz Mexico’s business and provide an attractive entry point into the chocolate category, while expanding the company’s presence in snacking. For Grupo Bimbo, the leading baking company in the world, this transaction will enable focus on its grain-based baking and snacks businesses.

“This acquisition will provide a step change for our business in Mexico, an important growth market for us, more than tripling our routes to market and growing our position in core snacking categories,” said Dirk Van de Put, Chairman and CEO of Mondelēz International. “We are thrilled to welcome Ricolino’s talented people and amazing brands into the Mondelēz International family.”

 “We ventured into the confectionery industry with the establishment of Ricolino in 1970; today, after 52 years of growth and progress, it is the industry leader in Mexico. We truly recognize the Ricolino family for this amazing accomplishment and are deeply thankful for their commitment and hard work. I’m confident that Mondelēz International will leverage these amazing brands to a much higher position,” said Daniel Servitje, Chairman and CEO of Grupo Bimbo.

The transaction is expected to close late in the third quarter or early fourth quarter of 2022