Mondelez Sells Controlling Stake in SnackWell\'s to PE Firm Brynwood Partners for Undisclosed Sum


Published Date : Dec 30, 2013

Mondelez International, the maker of some of the famous brands of snacks, including Trident gum, Cadbury and Oreo, has announced that it will be selling off a controlling stake that it currently holds in the SnackWell’s cracker and cookie business. According to a report in the Wall Street Journal, the company is selling this sake to Brynwood Partners, a private equity firm.

No details pertaining to the financial stakes of this deal were made public immediately by either of the firms involved in the deal. However, according to officials at Brynwood, the private equity firm now has plans to combine its newly SnackWell’s business with its Back to Nature brand that mainly comprises products such as granola and cookies, according to the same report in the Wall Street Journal.

Mondelez also further stated that it will continue to hold a significant minority stake in SnackWell’s as it manufactures products such as devil’s food cake cookies and chocolate chip that are mainly targeted at dieters.

The news report in the business daily also stated that request for comments couldn’t immediately returned by Brynwood and Mondelez outside of business hours. 

Earlier, in July 2013, Mondelez had faced criticism from leading activist investor Nelson Peltz as he stated that Mondelez was not generating enough profits though it had the potential to do so. In view of its sluggish performance, Nelson opined that the company should be taken over by PepsiCo Inc.

On Friday, shares of Mondelez on the Nasdaq closed at $34.91, and its stock has gone up by nearly 17% between the period of Peltz’s comments and now. 

The WSJ report also further stated that the private equity firm Brynwood is known for its specialty of taking over underperforming brands from multinationals and creating fresh, standalone firms from them.