Reshaping its portfolio to sustain higher long-term growth, Mondelēz International, Inc. has agreed to acquire Clif Bar & Company, maker of CLIF, LUNA, and CLIF Kid bars, for $2.9 billion with additional considerations. The deal expands Mondelēz International’s global snack bar business to more than $1 billion, including its refrigerated snack business Perfect Snacks in the U.S. and performance nutrition business Grenade in the U.K.

Mondelēz will continue to operate the Clif Bar & Company business from its headquarters in Emeryville, CA. The company will also continue to manufacture products at its facilities in Twin Falls, ID, and Indianapolis, IN.

“We are thrilled to welcome Clif Bar & Company’s iconic brands and passionate employees into the Mondelēz International family,” said Dirk Van de Put, chairman and CEO of Mondelēz International. “This transaction further advances our ambition to lead the future of snacking by winning in chocolate, biscuits and baked snacks as we continue to scale our high-growth snack bar business. As a leader and innovator in well-being and sustainable snacking in the U.S, Clif Bar & Company embodies our purpose to ‘empower people to snack right’ and we look forward to advancing this important work with Clif’s committed colleagues in the years ahead.”

The transaction is expected to be top-line accretive in year two and create cost synergies by using Mondelez International’s global and North American scale to expand Clif’s sales distribution and gain further penetration in existing and new customers and channels in the U.S.

“Mondelēz International is the right partner at the right time to support Clif in our next chapter of growth,” said Sally Grimes, CEO of Clif Bar & Company. “Our purposes and cultures are aligned and being part of a global snacking company with broad product offerings can help us accelerate our growth while staying true to our deeply ingrained Five Aspirations—sustaining our people, planet, community, business, and brands—five bottom lines that have grounded our company since its founding and will remain our North Star going forward.”

So far in 2022, Mondelēz International has announced an agreement to acquire Ricolino, Mexico’s leading confectionery company, from Grupo Bimbo and closed on its acquisition of Chipita S.A., a leader in the Central and Eastern European snack-size cakes and pastries category. This progress followed a year of strong global snacking growth in 2021, including the acquisitions of Grenade; Gourmet Food Holdings, a leading Australian food company in the premium biscuit and cracker category; and Hu, a well-being snacking company in the U.S.

The acquisition is subject to customary closing conditions and a pre-closing F reorganization and conversion to a limited liability company by Clif Bar & Company. The transaction is expected to close in Q3 following regulatory review.