Mondelez International, Inc. (NASDAQ: MDLZ) has signed an agreement to acquire energy foods and drinks firm Clif Bar & Company for $2.9 billion. The deal terms include a contingent earnout.
Headquartered in California, Clif Bar & Company makes organic and nutritious food under the brands CLIF Kid, LUNA, and CLIF.
The acquisition is expected to generate cost synergies as well as be accretive to Mondelez’s sales from the second year of completion, which is likely in the third quarter of 2022.
About Mondelez
Chicago-based Mondelez manufactures and sells snacks such as candy, gum, chocolate, biscuits, groceries, cheese, and powdered beverage products, among others. Its brands include Toblerone, Milka, Cadbury Dairy Milk, belVita, Oreo, LU, Trident, and more.
Price Target
Based on 11 Buys and one Hold, the stock has a Strong Buy consensus rating. MDLZ’s average price target of $72.18 implies 22.7% upside potential from current levels. Shares have lost 10.4% year-to-date.
Blogger Sentiment
TipRanks data shows that financial blogger opinions are 93% Bullish on MDLZ, compared to the sector average of 69%.
Conclusion
The deal is expected to boost Mondelēz’s global snack bar business to over $1 billion, as well as help the company sustain growth in the long term.