Mondelez CEO calls $2 billion Chipita acquisition a win for each firms
Dirk Van de Put, CEO of Mondelez, described the latest acquisition on Thursday as a “win win” for both companies involved in the deal.
The oreo maker announced on Wednesday that it had acquired Chipita, a Greek company whose croissants and baked snacks contributed to sales of $ 580 million last year. The purchase will give Mondelez back approximately $ 2 billion, which will be funded through new debt issuance and existing cash on hand.
“We can use their sales and presence to build our sales, but also to bring our brands to their products,” Van de Put told CNBC’s Jim Cramer about Mad Money. “Imagine a Cadbury chocolate or Milka chocolate croissant.”
Van De Put said that while Chipita’s products are mostly popular in Eastern Europe, they have growth potential around the world, particularly in emerging markets.
“I think it’s a real win-win,” he said.
Mondelez’s shares are up 8% this year for a market value of $ 89.2 billion.