DEERFIELD, Ill. -- Mondelez International has agreed to acquire baked-goods manufacturer Tate’s Bake Shop for approximately $500 million, subject to customary regulations. The deal is expected to close this summer.
Long Island, N.Y.-based Tate’s Bake Shop produces handcrafted cookies, cakes, pies, muffins, cupcakes, tea loaves, brownies, blondies and dessert bars, which are sold online and in retailers nationwide. The company was founded in 2000 by Kathleen King.
According to the agreement, Tate’s will continue operating as a stand-alone business with its current leadership but will receive various resources from Mondelez to drive growth.
Maura Mottolese, CEO of Tate’s Bake Shop, said the acquisition will allow Tate’s to expand its North American audience.
“We’re thrilled and humbled to be joining a portfolio of some of the world’s most well-known and successful snacking brands,” she 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 [King] first opened her storefront nearly two decades ago.”
Tate’s sales have quadrupled since 2013, and its retail sales in measured channels have increased by more than 40% through March 2018, according to the company.
“Tate’s is a great strategic fit that will complement our portfolio of beloved snacks brands,” said Dirk Van de Put, chairman and CEO of Mondelez. “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.”
Deerfield, Ill.-based Mondelez is a leading global snacking company, operating in 160 countries with approximately $26 billion in net revenue in 2017. The company manufactures biscuits, chocolate, gum, candy and powdered beverages; its products include belVita, Chips Ahoy, Oreo, Nabisco, Cadbury, Jacobs coffee, Tang powdered beverages and Trident gum.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.