Mondelez International announced that it has acquired full ownership of Hu Master Holdings, a maker of healthy snack items and vegan, paleo-friendly chocolate bars. The confectionery giant said that the deal closed on Jan. 4.
Though Mondelez (MDLZ) did not disclose the terms of the deal, the Wall Street Journal reported a deal value of about $340 million. Notably, Mondelez had already bought a minority stake in Hu in 2019, with an option for “a right of first offer to acquire the company.”
Glen Walter, president of Mondelez International North America said that “Hu is a strong strategic complement to our snacking portfolio in North America.” (See MDLZ stock analysis on TipRanks)
On Nov. 18, Citigroup analyst Wendy Nicholson initiated coverage on the stock with a Buy rating and a price target of $68 (17.3% upside potential). The analyst said that Mondelez has progressed to become a global leader in snacking foods and has nine global brands. In a note to investors, Nicholson said that she expects Mondelez to overcome the pandemic with momentum and is likely to see a 20% upside from current price levels.
Overall, consensus among analysts is a Strong Buy with 7 analysts recommending a Buy and 1 analyst suggesting a Hold. The average price target of $64.13 suggests upside potential of around 10.6% over the next 12 months. Shares have increased 9.3% over the past year.
Related News:
Mondelez Approves $4B Share Buyback Plan; Street Is Bullish
PPG Sweetens Offer To Buy Tikkurila For $1.52B
Hologic To Buy Biotheranostics For $230M; Top Analyst Sticks To Hold
