(Bloomberg) -- Mondelez International Inc. said it's buying the Canadian owner of the two-bite brownies brand from the private equity firm Thomas H. Lee Partners.
Mondelez is paying $1.2 billion to buy the company, according to people familiar with the matter.
Mondelez, confirming an earlier report by Bloomberg News, didn't provide financial terms in a press release announcing the deal Tuesday.
Representatives for Mondelez and Thomas H. Lee declined to comment on the terms.
Mondelez said the deal is expected to close in the second quarter of the year.
Toronto-based Give & Go Prepared Foods Corp. was founded in 1989 and now has 1,500 employees, according to its website. Its brands include Kimberley's Bakeshoppe and Mason St. Bakehouse.
“We are passionate about the consumer and this acquisition is very much on trend,” said Glen Walter President of North America for Mondelez International in an interview. “We are very passionate about the on-the-go snack.”
Thomas H. Lee Partners bought Give & Go in 2016 from Omers Private Equity. Give & Go has since acquired Create-A-Treat Ltd., Nafta Foods & Packaging Inc. and Uncle Wallace's Bake Shoppe to help build up the company.
Confectioneries and bakeries are undergoing a transition as consumers demand healthier products, including vegan options.
In July, Mondelez acquired a majority interest in Perfect Snacks, a maker of nut-butter based protein bars. Mondelez's Cadbury business is developing a plant-based version of its flagship Dairy Milk chocolate brand, The Telegraph reported in February.
Mondelez fell less than 1% in early trading Tuesday. The shares have gained 22% in the past year. The S&P 500 Packaged Foods Index, in which Mondelez has about 30% weighting, is up about 18% over the same time period.
To contact the reporters on this story: Crystal Tse in New York at ctse44@bloomberg.net;Ed Hammond in New York at ehammond12@bloomberg.net
To contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Michael Hytha
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