Business / Business Strategies

Mondelez Fixes Cost of Gluten-Free Bakery Acquisition at $81 million

By Kevin T. Higgins, Managing Editor

Mar 14, 2017

In its 2016 10K filing with the Securities and Exchange Commission, Mondelez International Inc. puts the purchase price of Enjoy Life Foods at $81 million, including cash and debt settlement.

A pioneer in the free-from category of baked goods, Enjoy Life was acquired by Mondelez Feb. 16, 2015. The acquisition added $37 million in incremental net revenues for Mondelez’s North American division for the year, according to the filing.

The purchase enabled Enjoy Life, which produces products without allergens, gluten and other ingredients of dietary concern to some individuals, to relocate production from suburban Chicago to Jeffersonville, Ind. The Mondelez division invested more than $39 million to lease and equip a 200,000 sq. ft. building with three production lines and distribution capabilities. According to Enjoy Life, it is North America’s largest dedicated allergen-free bakery. The official opening was Sept. 8.

Enjoy Life anticipates a workforce of 200 at the site by the end of 2017.

Mondelez also acquired a Vietnam biscuit manufacturer in 2015, paying $446 million. That acquisition added $128 million in sales revenue.

To account for the Enjoy Life acquisition, Mondelez allocated $58 million to identifiable intangible assets, $20 million to goodwill and $3 million to other net assets.