Mondelēz International has agreed to acquire US biscuit brand Tate’s Bake Shop from The Riverside and other shareholders for around $500m.
Based in Long Island in New York State, Tate’s Bake Shop is a cookie and baked goods specialist, which was founded in 2000.
Tate’s Bake Shop is known for producing thin-and-crispy cookies using simple, authentic, high-quality ingredients, said Mondelez.
The confectionery giant said that the acquisition will help it expand its portfolio of brands while providing entry into the fast-growing premium cookie segment.
Mondelez International chairman and CEO 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 the Tate‘s management team to expand distribution and build upon that success.”
Riverside is selling Tate’s Bake Shop along with other shareholders including the cookie and baked goods producer’s founder Kathleen King. The global private equity firm, which invested in Tate’s Bake Shop in 2014, said that the latter’s sales and earnings had quadrupled in the last five years.
Post acquisition, Tate’s will be operated by Mondelez International as an independent business to keep up with the authenticity of the brand while giving it resources to accelerate growth.
Tate’s Bake Shop CEO Maura Mottolese said: “Consistent with Mondelez International’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 Mondelez International, 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.”
The transaction is anticipated to be completed during summer of 2018, once it meets customary closing conditions, which includes receipt of regulatory approval.