GAUTENG, SOUTH AFRICA â€” AVI Ltd. on Nov. 25 confirmed it is in talks with Chicago-based Mondelez International regarding a potential acquisition of AVIâ€™s Snackworks business.
AVI had hinted at a potential sale of the Snackworks business since September but had not named any potential buyers.
â€œThe company advises shareholders that it has progressed discussions with Mondelez International LLC regarding the potential acquisition of AVIâ€™s Snackworks division,â€ AVI said.
AVIâ€™s Snackworks division offers a full range of sweet and savory biscuits, baked and fried snacks under the Bakers, Baumannâ€™s, Pyotts, Provita, Baker Street Snacks and Willards brands.
Based in Bryanston, Johannesburg, Snackworks has manufacturing facilities in Isando, Johannesburg; Rosslyn, Pretoria; and Westmead, Durban. The division generated revenue of approximately $270 million in the year ended June 30, which equates to about 32% of AVIâ€™s group revenue.
Mondelez has not commented on a potential acquisition but has been active in expanding its snacks business. The company earlier this year moved deeper into the global baking business with the acquisition of Chipita SA, a rapidly growing global baker of packaged cakes and pastries. Based in Athens, Chipita generated sales of about $580 million in 2020. The companyâ€™s products include croissants, bagel chips, cake bars, biscuits and spreads sold mostly under the 7Days, Chipicao and Fineti brands.