Mondelēz International announced it has entered into definitive agreements to sell its developed-market gum business in the United States, Canada and Europe to Perfetti Van Melle Group, a leading European gum and confectionery maker for a headline purchase price of $1.350 billion or 15 times equivalent to estimated current year EBITDA.

The divestiture advances the company’s portfolio reshaping strategy, as outlined at its Investor Day in May, enabling greater focus on growth and reinvestment in its core chocolate, biscuit and baked snacks categories.

The sale includes manufacturing facilities in Rockford, Ill., and Skarbimierz, Poland and the gum brands Trident, Dentyne, Stimorol, Hollywood, V6, Chiclets, Bubbaloo and Bubblicious in the United States, Canada and Europe, as well as the European candy brands Cachou Lajaunie, Negro, and La Vosgienne. Mondelēz International will continue to operate its gum business outside the United States, Canada and Europe, led by Stride in China, as well as all of its other candy brands and products.

The acquisition of Mondelēz International’s developed market gum business complements the Perfetti Van Melle portfolio—including iconic global brands such as Mentos, Chupa Chups and Alpenliebe.

Mondelēz International’s Vision 2030 strategy aims to generate 90% of revenue in chocolate and biscuits, including baked snacks—categories identified with significant growth opportunities for the company, up from 59% in 2012 and 80% today.

The transaction, which is subject to customary closing conditions, is expected to close in Q4 of 2023. The definitive agreements cover the sale of the business in the United States, Canada and Europe excluding France. The parties have entered into exclusive arrangements for the sale of the business in France.