French dairy giant The Bel Group has agreed to engage in exclusive negotiations to acquire a majority stake in fruit snacks and dessert maker MOM Group.
Owned by a private equity LBO France, the MOM Group has significant presence in the US and France. Its brands include Materne, Mont Blanc, Pom’Potes and GoGosqueeZ.
The group earned a revenue of €362m in 2015, doubling its size over the past five years.
Currently, it employs 1,300 people and owns four production sites, including two in France and two in the US.
The acquisition would enable Bel and MOM to fashion together a major global player in the healthy snacks segment.
Bel currently sells its brands, which include The Laughing Cow, Kiri, Mini Babybel, Leerdammer, and Boursin, in nearly 130 countries.
Fromageries Bel Chairman and CEO Antoine Fiévet saud: “This deal alongside MOM Group’s management represents an historic opportunity for Bel to accelerate the building of a major player in single-serving healthy snack portions, in step with the Group’s strategic ambitions.
“The perfectly complementary nature of the product ranges is ideal for meeting growing consumer expectations and the nutritional challenges facing many, many countries.
“Focusing the teams on a limited number of brands with strong international potential, and combining the industrial expertise and innovative capabilities of Bel and MOM creates an extraordinary foundation for growth.”
The deal is subject to approval from the competent competition authorities and to the usual closing conditions.
It will also be submitted to both companies’ labor-representation bodies for consultation.
The acquisition is expected to be completed by the end of 2016.
Bel plans to finance the acquisition through its own resources and by issuing additional debt.
MOM Group CEO said: “Our partnership with Bel will help create a French headquartered, healthy snack-food company that will be uniquely positioned and supported by international brands.”
In July, Bel formed a strategic partnership with social media giant Facebook to accelerate the deployment of its digital engagement strategy.
Image: Butter cookies. Photo courtesy of Raielcla/Wikipedia.
