Mondelez to buy Toronto-based maker of two-bite brownies for US$1.2 billion

Mondelez International Inc. said it’s buying the Canadian owner of the two-bite brownies brand from the private equity firm Thomas H. Lee Partners.

Mondelez is paying US$1.2 billion to buy the company, according to people familiar with the matter.

Mondelez, confirming an earlier report by Bloomberg News, didn’t provide financial terms in a press release announcing the deal Tuesday.

Representatives for Mondelez and Thomas H. Lee declined to comment on the terms.

Mondelez said the deal is expected to close in the second quarter of the year. rbc earnings

Toronto-based Give & Go Prepared Foods Corp. was founded in 1989 and now has 1,500 employees, according to its website. Its brands include Kimberley’s Bakeshoppe and Mason St. Bakehouse.

“We are passionate about the consumer and this acquisition is very much on trend,” said Glen Walter President of North America for Mondelez International in an interview. “We are very passionate about the on-the-go snack.”

Thomas H. Lee Partners bought Give & Go in 2016 from Omers Private Equity. Give & Go has since acquired Create-A-Treat Ltd., Nafta Foods & Packaging Inc. and Uncle Wallace’s Bake Shoppe to help build up the company.

Confectioneries and bakeries are undergoing a tough transition as consumers demand healthier products, including vegan options.

In July, Mondelez acquired a majority interest in Perfect Snacks, a maker of nut-butter based protein bars. Mondelez’s Cadbury business is developing a plant-based version of its flagship Dairy Milk chocolate brand, The Telegraph reported in February.

Mondelez shares closed at US$57.28 on Monday and were down slightly pre-market in New York.

S&P 500 Packaged Foods Index, in which Mondelez has about 30% weighting, has fallen 1.9 per cent this year. That includes a 1.3 per cent drop Monday as the S&P 500 plummeted 3.4 per cent amid fears the coronavirus epidemic would deepen.