GAUTENG, SOUTH AFRICA — AVI Ltd. on Nov. 25 confirmed it is in talks with Chicago-based Mondelez International regarding a potential acquisition of AVI’s Snackworks business.
AVI had hinted at a potential sale of the Snackworks business since September but had not named any potential buyers.
“The company advises shareholders that it has progressed discussions with Mondelez International LLC regarding the potential acquisition of AVI’s Snackworks division,” AVI said.
AVI’s Snackworks division offers a full range of sweet and savory biscuits, baked and fried snacks under the Bakers, Baumann’s, Pyotts, Provita, Baker Street Snacks and Willards brands.
Based in Bryanston, Johannesburg, Snackworks has manufacturing facilities in Isando, Johannesburg; Rosslyn, Pretoria; and Westmead, Durban. The division generated revenue of approximately $270 million in the year ended June 30, which equates to about 32% of AVI’s group revenue.Mondelez has not commented on a potential acquisition but has been active in expanding its snacks business. The company earlier this year moved deeper into the global baking business with the acquisition of Chipita SA, a rapidly growing global baker of packaged cakes and pastries. Based in Athens, Chipita generated sales of about $580 million in 2020. The company’s products include croissants, bagel chips, cake bars, biscuits and spreads sold mostly under the 7Days, Chipicao and Fineti brands.