Mondelēz buys Tate’s Bake Shop for $500 million
Mondelēz International has announced an agreement with The Riverside Co., a global private equity firm, and other shareholders, including founder Kathleen King, to acquire Tate’s Bake Shop for approximately $500 million.
Mondelēz International has announced an agreement with The Riverside Co., a global private equity firm, and other shareholders, including founder Kathleen King, to acquire Tate’s Bake Shop for approximately $500 million. Known for its signature thin-and-crispy cookies with simple, high-quality ingredients, Tate’s is a fast-growing, premium cookie and baked goods brand.
Founded in 2000 on Long Island, N.Y., Tate’s Bake Shop has cultivated a devoted consumer following across the United States. Sales have quadrupled over the past five years, and retail sales in measured channels have grown by more than 40% through March 2018.
“Tate’s is a great strategic fit that will complement our portfolio of beloved snacks brands,” said Dirk Van de Put, chairman and CEO, Mondelēz International. “With a unique and authentic brand and truly delicious products, this acquisition gives us an attractive entry point into the 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.”
Mondelēz will operate Tate’s as a separate standalone business to maintain the authenticity of the brand while providing resources to accelerate growth. Tate’s Bake Shop senior leadership will continue to run the Tate’s business from its headquarters on Long Island, including its Bake Shop located in Southampton, N.Y. Tate’s will continue to produce all products at its current manufacturing facility.
The acquisition is subject to customary closing conditions and is expected to close during the summer of 2018.