DAVY VIEW

Mondelez’s acquisition of CLIF Bar (CLIF) materially expands its healthy snacking platform and creates a scale player in an attractive nutrition category. The deal follows the recent acquisitions of Perfect Snacks and Grenade and underpins CPG’s growing appetite to expand its healthy indulgence and better-for-you portfolios – pre-empting changing consumer habits and increasing regulation at till-side. The deal multiple of 3.6x EV/Sales, a material premium to publicly listed peers, reflects the category halo, CLIF’s strong growth track record (9% ten-year CAGR), strong brand equity (heritage since 1992), dominant domestic market position in bars, premium-focus with product innovation and future revenue and cost synergies.