Cadbury and Oreo owner Mondelez International has snapped Tate’s Bake Shop, a US cookie manufacturer in a deal of about $500 million from private equity firm The Riverside Company and others.

Mondelez Acquisition of Tate’s Bake Shop

Founded in 2000, Tate’s Bake Shop makes thin-and-crispy chocolate-chip cookies and its acquisition enables Mondelez to widen its portfolio of brands besides giving it entry into the rapid-growing premium cookie segment.

Commenting on Mondelez acquisition of Tate’s Bake Shop, Dirk Van de Put – Chairman and CEO of Mondelez 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.”

Headquartered in Long Island in New York, Tate’s Bake Shop was founded by Kathleen King, who is one of the sellers of the business to the confectionery giant. Tate’s Bake Shop saw an investment from Riverside in 2014 and since then the US cookie manufacturer is claimed to have grown its sales and earnings four times.

Loren Schlachet – Managing Partner at Riverside, said: “Riverside took a great company and made it even better.

“Our retail partners had a knack for telling Tate’s exactly what they wanted, and our distributor partners ensured that those needs were met. That’s the essence of great consumer brand investing and it helped make Tate’s a success story.”

After the completion of the acquisition, Mondelez plans to operate Tate’s Bake Shop as an independent entity to sustain its uniqueness while providing it the resources to grow further.

Maura Mottolese – CEO of Tate’s Bake Shop, commenting on Mondelez acquisition of Tate’s Bake Shop, 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 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 Mondelēz 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.”

Mondelez acquisition of Tate’s Bake Shop is likely to be wrapped up this summer provided it satisfies customary closing conditions such as securing regulatory approval.

  Dirk Van de Put, Food acquisition news, Loren Schlachet, Maura Mottolese, Mondelez International, Tate’s Bake Shop, US cookie manufacturer, USA