Mondelēz completes acquisition of Tate’s Bake Shop for $500m

Global snack food producer Mondelēz International has completed the previously announced acquisition of US-based cookies company Tate’s Bake Shop (Tate’s).

Mondelēz entered an agreement last month with private equity firm Riverside and other shareholders, including founder Kathleen King, to acquire Tate’s for approximately $500m.

Tate’s was originally established in 2000 in Long Island, New York.

The company is primarily engaged in the production of cookies using simple and quality ingredients.

Mondelēz intends to enter the fast-growing premium cookie sector via the acquisition.

Mondelez International chairman and chief executive officer Dirk Van de Put said: “The Tate’s Bake Shop acquisition represents the type of bolt-on transaction that will leverage our strengths and drive growth and value for our shareholders.

“Tate’s on-trend products complement our existing biscuits portfolio and provide access into the fast-growing premium cookie segment.

“We‘re excited to begin working with the Tate’s team to expand the reach of this beloved, authentic brand to more consumers around the world.”

Mondelēz plans to operate Tate’s as a separate business unit, which will be managed by its existing management team in order to maintain the authenticity of the brand, while simultaneously providing resources to accelerate growth.

Tate’s will also benefit from Mondelēz’s distribution channels, as well as the company’s sales and marketing capabilities, which are expected to further expand the footprint of its products.