Mondelez Global, a subsidiary of packaged foods company Mondelez International, Inc. (MDLZ), recently sold its SnackWell’s cookies and snacks business to Back to Nature Foods Company, a subsidiary of Brynwood Partners. Financial terms of the sale were not disclosed.
Brynwood Partners, a private equity firm, formed Back to Nature Foods Company through a joint venture partnership with Mondelez Global in 2012. Mondelez Global has a minority position in the joint venture, while Brynwood Partners enjoys operating control.
The SnackWell’s brand includes low-calorie snacks like Crème Sandwich Cookies, Devil’s Food Cakes, Fudge Pretzels, Yogurt Pretzels and Popcorn.
Prior to SnackWell’s, Brynwood Partners bought many small food brands or businesses from larger companies and revitalized them. Some popular names include TrueNorth nut-clusters and Kretschmer wheat germ businesses from PepsiCo, Inc. (PEP); Lightlife meat alternative products from ConAgra Foods, Inc. (CAG) and Balance Bar energy/nutrition bars from Kraft Foods Group, Inc. (KRFT). Kraft Foods Group emerged from the split of Kraft Foods Inc. into two independent companies — Kraft Foods Group and Mondelez — in Oct 2012.
Mondelez carries a Zacks Rank #3 (Hold). Ever since the split from Kraft, Mondelez has been under pressure and posted disappointing results.
Last month, Mondelez reported dismal third-quarter 2013 results, barely managing to meet the Zacks Consensus Estimate for earnings but missing the same for revenues due to weak performance in China. The company also lowered its organic revenue guidance for 2013 as the present headwinds are expected to continue.