LONDON (dpa-AFX) - Mondelez International (MDLZ) announced an agreement with The Riverside Company, a global private equity firm, and other shareholders, including Founder Kathleen King, to acquire Tate's Bake Shop for about $500 million.
Founded in 2000 on Long Island, N.Y., Tate's has cultivated a devoted consumer following across the country. With a strong founder story and on-trend products, Tate's has been one of the fastest growing biscuit brands in the United States over the last 12 months. The brand's sales have quadrupled over the past five years. In 2018, retail sales in measured channels have grown by more than 40 percent through March.
Mondelez International said it will operate Tate's as a separate standalone business to nurture its entrepreneurial spirit and 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. 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.
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