Mondelez will buy energy bar producer Clif Bar for around $3 billion

Mondelez International Inc said on Monday it will buy energy bar producer Clif Bar & Company for $2.9 billion to expand its worldwide snack bar business.

The Cadbury maker will also pay additional amounts to the sellers based upon its earnings from Clif Bar, Mondelez (NASDAQ:MDLZ) stated.

The business said it will obtain the Clif, Luna and Clif Kid brands of bars in its portfolio with the acquisition, creating a $1 billion-plus worldwide snack bar franchise for itself.

"Mondelēz International is the perfect partner at the right moment to support Clif in our next chapter of growth," stated Sally Grimes, Chief Executive Officer, Clif Bar & Company. "Our aims and cultures are linked and being part of a global snacking company with extensive product offers can help us accelerate our growth."

Mondelez will continue to manufacture Clif's goods in its facilities at Twin Falls in Idaho and Indianapolis in Indiana, the firm said.

The food and beverage giant, which also makes Toblerone, Oreo and Tang, expects the merger to be accretive to its topline in the second year following the deal and will also create cost synergies for Clif's distribution due to the company's worldwide scale.

Clif Bar's acquisition represents the eighth merger since 2018 as Mondelez works towards reorganizing its portfolio for stronger long-term growth.

Mondelez forecasts organic net revenue to reach above 4 percent in 2022, while its long-term growth target is of more over 3 percent .

The purchase is likely to finalize in the third quarter, Mondelez said.