Mondelēz agrees to acquire Tate’s Bake Shop for $500m

US-based confectionery giant Mondelēz International (Mondelēz) has entered into an agreement with global private equity firm Riverside, as well as other shareholders, including Founder Kathleen King, to acquire Tate’s Bake Shop (Tate’s) for nearly $500m.

The acquisition is subject to customary closing conditions and is expected to take place later this year.

Established in 2000 in Long Island, New York, Tate’s has been producing cookies, which are claimed to be produced using simple, authentic and high-quality ingredients.

Through the acquisition, Mondelēz intends to enter into the fast-growing, premium cookie sector.

Mondelēz chairman and chief executive officer Dirk Van de Put said: “Tate’s is a great strategic fit that will complement our portfolio of beloved snacks brands.

“With a unique and authentic brand and truly delicious products, this acquisition gives us an attractive entry point into the fast-growing premium cookie segment.

“Tate’s has demonstrated exceptional and very profitable growth, and we look forward to working with Tate‘s management team to expand distribution and build upon that success.”

Upon completion, Mondelēz will operate Tate’s as an independent business unit, as well as retain the existing senior leadership team.

The team will continue to operate its business from its headquarters located in Long Island, including its Bake Shop located in Southampton, New York.

Tate’s will also continue to produce all products from its current manufacturing facility.

Tate’s chief executive officer Maura Mottolese said: “We’re thrilled and humbled to be joining a portfolio of some of the world’s most well-known and successful snacking brands.

“Consistent with Mondelēz’s purpose to create more moments of joy for consumers, providing an authentic, delicious indulgence has been at the heart of Tate’s Bake Shop since Kathleen first opened her storefront nearly two decades ago.

“Now, together with Mondelēz, we’ll have the opportunity to take Tate’s to the next level and offer our cookies and baked treats to many more consumers across North America.”