In an exciting move for Mondelēz International, the company has entered into an agreement with global private equity firm The Riverdale Company and other shareholders, including Founder Kathleen King, to acquire Long Island, New York-based Tate’s Bake Shop for $500 million.
“Tate’s is a great strategic fit that will complement our portfolio of beloved snacks brands,” said Dirk Van de Put, Chairman and Chief Executive Officer, Mondelēz International. “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.”
Tate’s Bake Shop, founded in 2000, is known for its thin-and-crispy cookies with simple, authentic, and high-quality ingredients, according to a press release, and is also quickly growing its premium cookie and baked goods brand, cultivating a devoted consumer-base throughout the U.S. Tate’s Bake Shop’s sales have quadrupled over the past five years, and the company has been one of the fastest growing biscuit brands in nation over the past 12 months. To further prove this point, the company’s retail sales have shot up over 40 percent through March during this year, alone.
“We’re thrilled and humbled to be joining a portfolio of some of the world’s most well-known and successful snacking brands,” said Maura Mottolese, Chief Executive Officer, Tate’s Bake Shop. “Consistent with Mondelēz 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 first opened her storefront nearly two decades ago. Now, together with Mondelēz International, we’ll have the opportunity to take Tate’s to the next level and offer our cookies and baked treats to many more consumers across North America.”
In an effort to nurture the company’s entrepreneurial spirit while keeping the brand’s authenticity, Mondelēz International will operate Tate’s as a separate standalone business and will provide resources to accelerate growth. To achieve this seamless takeover, Tate’s Bake Shop’s senior leadership will continue operations out of the Long Island headquarters, including its Bake Shop in Southampton, and will continue to produce all items from its current manufacturing facility.
As always, the acquisition is subject to customary closing conditions. The acquisition is expected to close sometime this summer.
Will there be more strategic acquisitions within the bakery sector like this one? Deli Market News will keep you updated with the latest.