Mondelez International Inc.
MDLZ,
+0.16%
announced its $2 billion acquisition of Central and Eastern European baked goods company Chipita S.A. on Wednesday. The deal will add a new category of goods to the Mondelez portfolio, and expand the company's geographic reach. Mondelez will fund the deal with existing cash and new debt issuance. The deal is expected to be accretive at the closing. Chipita, a 40-year-old company that launched in Greece, generated $580 million in revenue in 2020. Chipita brands include 7Days, Chipicao, and Fineti. The acquisition doesn't include a meat processing business, P.G. Nikas S.A, or Chipita's minority interest in an Indian joint venture. Chipita products are manufactured in 13 plants and sold across 50 countries. So far in 2021, Mondelez has also acquired U.K. nutrition company Grenade, Australian cracker company, Gourmet Food Holdings, and U.S. snacking company Hu. Mondelez stock has gained 9% for the year to date while the S&P 500 index
SPX,
+0.28%
is up 11.5% for the period.