Mondelez To Acquire Ricolino In Mexico

(RTTNews) - Mondelez International (MDLZ) has agreed with Grupo Bimbo to acquire its confectionery business, Ricolino, for approximately $1.3 billion. The company said the acquisition will double the size of Mondelez Mexico's business and provide an attractive entry point into the chocolate category, while expanding the presence in snacking.

Ricolino has approximately $500 million in annual revenue. Its iconic brands are Ricolino, Vero, La Corona and Coronado. The company said the acquisition will be funded through an issuance of debt and cash on hand and is anticipated to close in late third quarter or early fourth quarter.