Mondelez International announced that it is acquiring an 80 percent stake in Kinh Do Corp., the category-leading snacks business in Vietnam.
The move is an effort to help Mondelez accelerate its growth strategy in the Asia Pacific region.
While the deal is still subject to the approval of Kinh Do's shareholders, the landmark investment will leverage Kinh Do's manufacturing capabilities, comprehensive distribution network and some of the best Vietnamese talent in the industry.
Kinh Do's brands include Kinh Do mooncakes and biscuits, Cosy biscuits, Solite soft cakes and AFC crackers. The brands complement Mondelez’s portfolio of iconic snacks brands in the region, including Oreo cookies, Ritz crackers and Cadbury chocolates.
Tim Cofer, executive vp. and president, Asia Pacific and Eastern Europe, Middle East & Africa for Mondelez Int'l, is excited about what the two businesses will be able to achieve together.
“Kinh Do is a successful Vietnamese business with decades of heritage,” he explains. “Its deep understanding of local consumers, the commercial environment and complex routes to market in Vietnam, provide a strong foundation to grow the business.”
And, Tran Kim Thanh, chairman of Kinh Do Corp., says the deal will help take his company to the next level.
"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," he explains. "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."
Kinh Do's board of directors will propose the transaction to shareholders at the Kinh Do Corporation Extraordinary General Meeting in December 2014. Prior to the investment by Mondelez, Kinh Do will complete its previously announced restructuring to consolidate its snacks division (not including its Kido ice cream and dairy division and its retail bakeries) into one business entity, BKD.
Under the proposed transaction, Mondelez will make an initial investment of VND7.846 trillion (approximately $370 million at current exchange rates) in exchange for 80 percent of the shares of the restructured snacks business.
Mondelez has an option to acquire, and Kinh Do has an option to sell, the remaining shares of BKD. The option is exercisable any time after 12 months from the completion of the 80 percent investment.
The proposed transaction is expected to close in the second quarter of 2015, subject to approval at the Kinh Do Corporation Extraordinary General Meeting and certain other regulatory requirements.
About Kinh Do Corporation
Kinh Do Corporation is Vietnam's leading confectionery company with a diversified portfolio of category-leading brands, built over the past 21 years.
Throughout its extensive history, Kinh Do has built a market-leading presence in a wide range of confectionery products, cakes, buns, moon cakes, cookies and ice cream. As part of its Food & Flavor strategy, coupled with the company's strength in distribution, production, marketing and sales, Kinh Do aims to continue to be a market-leading food company.
About Mondelez International
Mondelez International is a global snacking powerhouse with $35 billion in revenue in 2013. Creating delicious moments of joy in 165 countries, the company is a world leader in biscuits, chocolate, gum, candy, coffee and powdered beverages, with billion-dollar brands such as Oreo, LU and Nabisco biscuits; Cadbury, Cadbury Dairy Milk and Milka chocolate; Trident gum; Jacobs coffee and Tang powdered beverages.
Mondelez is a member of the Standard and Poor's 500, NASDAQ 100 and Dow Jones Sustainability Index.
