Business

Mondelez CEO calls $2 billion Chipita acquisition a win for both companies

In this article

Dirk Van de Put, CEO of Mondelez International.
Adam Jeffery | CNBC

Mondelez CEO Dirk Van de Put on Thursday called its latest acquisition a “win win” for both companies involved in the deal.

The Oreo-maker announced Wednesday its acquisition of Chipita, a Greek company whose croissants and baked snacks helped it generate $580 million in sales last year. The purchase sets Mondelez back about $2 billion, which it plans to fund using new debt issuance and existing cash on hand.

“We can use their distribution, their presence to build our distribution, but also to bring our brands to their products,” Van de Put told CNBC’s Jim Cramer on “Mad Money.” “Imagine a croissant with Cadbury chocolate or Milka chocolate.”

Van De Put said that Chipita’s products, while popular mostly in Eastern Europe, have potential for growth around the rest of the globe, particularly in emerging markets.

“It’s a real win win situation in my opinion,” he said.

Shares of Mondelez have risen 8% this year, giving it market value of $89.2 billion.

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer’s world? Hit him up!
Mad Money TwitterJim Cramer TwitterFacebookInstagram

Questions, comments, suggestions for the “Mad Money” website? madcap@cnbc.com

Products You May Like

Articles You May Like

The Election Can Affect Taxes, Social Security, And Your Retirement
Applebee’s owner Dine Brands wants to steal fast-food customers with its deals
Social Security now expected to run short on funds in 2035, one year later than previously projected, Treasury says
Escaping The Sunk Cost Trap: How Behavioral Economics Can Improve Your Daily Decisions
London’s elite Garrick Club votes to allow women for the first time

Leave a Reply

Your email address will not be published. Required fields are marked *