(Reuters) -Oreo maker Mondelez International Inc (NASDAQ:MDLZ) said on Monday it had agreed to sell its gum business, including brands such as Trident and Dentyne, in the United States, Canada and Europe to Perfetti Van Melle Group for $1.35 billion.
Perfetti Van Melle, the European gum and confectionery maker behind brands such as Mentos, Alpenliebe and Chupa Chups, will also acquire Mondelez's manufacturing facilities in Rockford, Illinois and Skarbimierz, Poland.
Mondelez put its developed markets gum unit, which also includes brands such as Bubbaloo and Bubblicious, under a strategic review after demand took a severe hit during the COVID-19 lockdowns.
The company said it will continue to operate its gum business outside the United States, Canada and Europe.
Mondelez has been reshaping its portfolio with the aim of generating 90% of its revenue from its chocolates and biscuits divisions, having also made a series of acquisitions over the past year.
The Toblerone chocolate maker earlier this year acquired energy bar maker Clif Bar & Company for $2.9 billion and bought Greek food firm Chipita S.A. for $2 billion.
The deal is expected to close in the fourth quarter of 2023, Mondelez said, adding it does not include the sale of its business in France. The parties have entered into exclusive arrangements for the sale of the business in the country, it said.