DEERFIELD, ILL. — Mondelēz International has agreed to acquire an 80% stake in Kinh Do Corp.’s snacks business in Vietnam for approximately $370 million. Kinh Do, Vietnam’s leading confectionery company, manufactures Kinh Do mooncakes and biscuits, Cosy biscuits, Solite soft cakes and AFC crackers.
For Mondelēz, the deal leverages Kinh Do’s manufacturing capabilities and comprehensive distribution network within the fast-growing consumer goods industry in Vietnam. Kinh Do’s brand portfolio complements Mondeléz’s snack products in the region, which include Oreo cookies, Ritz crackers and Cadbury chocolates.
"Our significant investment in Kinh Do and Vietnam is a perfect fit for our growth strategy in Asia Pacific, strengthening our core snacking categories in a high-growth dynamic market," said Tim Cofer, executive vice-president and president, Asia Pacific and Eastern Europe, Middle East & Africa for Mondelēz. "Kinh Do is a successful Vietnamese business with decades of heritage. Its deep understanding of local consumers, the commercial environment and complex routes to market in Vietnam, provide a strong foundation to grow the business. Our companies share a passion for making brands people love, so I'm tremendously excited about what our businesses can achieve together."
Prior to Mondelēz’s proposed investment, Kinh Do will complete a previously announced consolidation of its snacks division into one business entity, BKD. Under the terms of the agreement, Mondelēz will buy 80% of the restructured business with the option to acquire the remaining shares within 12 months from the completion of the investment. Kinh Do will have the option to sell the remaining shares within that period. The deal is expected to close in the second quarter of 2015, pending approval at Kinh Do’s shareholder meeting in December as well as other regulatory requirements."The love and trust of customers along with the efforts of our employees over the past two decades have made Kinh Do's brands what they are today," said Tran Kim Thanh, chairman of Kinh Do Corp. "We're proud to be able to bring Kinh Do to the next level of growth and to offer new tastes to consumers — not only in Vietnam but the world. Today's announcement is also firm recognition of Kinh Do as a well-loved brand that has earned the trust of consumers over the years. The proposed transaction is aligned to our business direction and will help us to successfully deliver our new strategy."