Mondelez International Inc said on Monday it would buy Grupo Bimbo's confectionery business, Ricolino, for around $1.3 billion, as the Toblerone chocolate maker plans to expand in Mexico.
The acquisition will double the size of Mondelez Mexico's business and provides an attractive entry point into the chocolate category, the U.S. firm said.
Ricolino brought in around $500 million in annual revenue. It employs nearly 6,000 workers, has four manufacturing facilities and distributes its products to several channels, including supermarkets and convenience stores.
The Ricolino business includes brands such as Ricolino, Vero, La Corona and Coronado and makes several confectionary products including lollipops, marshmallows, chocolates and gummies. (Reporting by Praveen Paramasivam in Bengaluru; Editing by Maju Samuel)