Mondelez, the conglomerate behind brands Oreo, Chips Ahoy, and Ritz Crackers, will acquire cookie maker Tate’s Bake Shop for $500 million in cash.
As first reported in The Wall Street Journal, the deal is expected to close this summer. Tate’s, a Southampton, N.Y.-based premium cookie and baked good brand, has been growing rapidly. Tate’s sales have quadrupled in the past five years.
The deal comes at a time when traditional snack companies are struggling as they seek to adapt to changing consumer tastes toward foods with healthier ingredients. And Mondelez is no different. The company’s North America business has been suffering, and its sales in the region fell 1.3% last quarter. Tate’s, on the other hand, has a devoted consumer following across the country, and it will continue to operate as an independent entity following the acquisition. The company is also known for its natural-baked cookies, cakes, brownies, and pies, and it even offers gluten-free options.
This is the first big deal for CEO Dirk Van de Put, who said in a news release, “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.”