Mondelez’s $2bn Acquisition of Chipita

By Jonathan Fuchs, Eden Yang, Lolade Oluko and David Summers (London School of Economics), Greis Gaeta, Federico De Rosa, Lorenzo Mirone and Riccardo Colombo (Bocconi University)


Overview of the deal

Acquirer: Mondelez

Target: Chipita

Total Transaction Size: $2B

Closed date: 26 May 2021

Advisors: Credit Suisse and Goldman Sachs

Mondelez, the American food conglomerate behind the beloved Oreo biscuits, is gaining a foothold in the baked goods industry through its recent acquisition of Chipita. Based in Athens, Chipita is known for its packaged croissants, biscuits and cake bars, with sales of close to $600m in 2020. It is not difficult to see a strong complementary relationship between the acquirer and target, as their brand loyalties in different parts of the world and selection of products offered can come together and appeal to an ever-greater consumer base with ever-changing tastes and preferences. Mondelez is seeking to tap into Chipita’s well-established customer base in central and eastern Europe. The deal will be funded with surplus cash balances supplemented by debt issuance. While the purchase price is several times Chipita’s annual sales, the deal is expected to be accretive upon closing. Acquisition multiples are expected to be around 3.5x last year’s revenues and 20x EBITDA before any cost and revenue synergies are accounted for.

Company Details: (Acquirer - Mondelez International)

Mondelez International (MDLZ) is an American food, snack, beverage and confectionery company operating in approximately 160 countries. It was spun out of the Kraft Company in 2012, and currently holds Cadbury, Ritz Biscuits, Belvita, Oreo and many other international snack brands in its portfolio. As of May 2021, Mondelez shares have experienced LTM growth of 9%, and the company’s revenues rose to $7.30B in January 2021 from $6.91B a year before. The company has a strong acquisitive strategy that helps it remain a competitor against other consumer packaged goods giants such as Johnson & Johnson and Mars Inc.

Founded in 1923, headquartered in Chicago, Illinois (USA)

CEO: Dirk Van de Put

Number of employees: 80,000

Market Cap: $89.15B (as of 03/06/2021)

EV: $107.16B

LTM Revenue: $25.89B


LTM EV/Revenue: 3.95x


Company Details: (Target - Chipita S.A.)