Mondelēz International, one of the globally reputed contenders of synthetic food market, has reportedly signed on a major agreement with private equity firm The Riverside Company. The agreement also involves the participation of other stakeholders such as Founder Kathleen King and has been inked with the intention of acquiring Tate’s Bake Shop for an approximate valuation of USD 500 million.
Tate’s is seemingly a premium cookie & baked goods brand renowned for its patented thin, crispy cookies made with simple, high-quality ingredients. Dirk Van de Put, Chairman and Chief Executive Officer, Mondelēz, in this regard, claims that Tate’s will indeed fit in perfectly with the company’s portfolio of snack brands. He also says that the acquisition provides Mondelēz with an attractive opportunity to penetrate the fast-growing premium cookie segment. With Tate’s depicting a very profitable growth rate, the firm looks forward to working with the New York based synthetic food industry player to expand distribution and ensure future success, he further adds.
If reports are to be believed, Mondelēz will be operating Tate’s as a standalone business to make sure that the brand’s authenticity and entrepreneurial spirit remain undeterred. It will however, continue to provide the necessary resources to accelerate the brand’s growth. Tate’s Bake Shop operations will be run from the company’s headquarters on Long Island, and the firm will continue to manufacture its signature products at its existing manufacturing facility.
Meanwhile, Maura Mottolese, Chief Executive Officer, Tate’s Bake Shop, has been quoted stating that the firm is humbled to be a part of the portfolio of such a reputed synthetic food market player. Together with Mondelēz, we would now be able to offer our baked treats across the North America consumer base, Mottolese says.
Reportedly, the acquisition deal will reach closure during the summer of 2018 and will be subject to the standard closing conditions.