Mondelez International, Inc. is acquiring Clif Bar & Co., Emeryville, California, for $2.9 billion. The acquisition includes the Clif, Luna and Clif Kid brands as well as manufacturing facilities in Twin Falls, Idaho, and Indianapolis.

Once the acquisition is complete, Mondelez International plans to incorporate its Perfect Snacks and Grenade nutrition business with Clif Bar and will form a business unit with more than $1 billion in sales.

“This transaction further advances our ambition to lead the future of snacking by winning in chocolate, biscuits and baked snacks as we continue to scale our high-growth snack bar business,” says Dirk Van de Put, chairman and chief executive officer. “As a leader and innovator in well-being and sustainable snacking in the US, Clif Bar & Co. embodies our purpose to ‘empower people to snack right’ and we look forward to advancing this important work with Clif’s committed colleagues in the years ahead.”

Clif Bar will remain headquartered in Emeryville to nurture “its entrepreneurial spirit” and maintain the brand’s purpose and authenticity, according to Mondelez International.

“Mondelez International is the right partner at the right time to support Clif in our next chapter of growth,” says Sally Grimes, CEO of Clif Bar & Co. “Our purposes and cultures are aligned and being part of a global snacking company with broad product offerings can help us accelerate our growth while staying true to our deeply ingrained five aspirations — sustaining our people, planet, community, business, and brands — five bottom lines that have grounded our company since its founding and will remain our North Star going forward.”

Mondelez says the transaction is expected to be top-line accretive in year two and create cost synergies by using Mondelez International’s global and North American scale to expand Clif’s sales distribution and gain further penetration in existing and new customers and channels in the United States.