Mondelēz International has reached an agreement with The Riverside Company, a global private equity firm, and other shareholders, including Founder Kathleen King, to acquire Tate’s Bake Shop for approximately $500 million.

Tate’s is a premium cookie and baked goods brand that was founded in 2000, with the brand’s sales having quadrupled over the past five years. In 2018, retail sales in measured channels had grown by more than 40 per cent through March.

“Tate’s is a great strategic fit that will complement our portfolio of beloved snacks brands,” said Dirk Van de Put, Mondelēz chief executive. “With a unique and authentic brand and truly delicious products, this acquisition gives us an attractive entry point into the fast growing premium cookie segment. Tate’s has demonstrated exceptional and very profitable growth, and we look forward to working with the Tate‘s management team to expand distribution and build upon that success.”

Maura Mottolese, Tate’s chief, added: “We’re thrilled and humbled to be joining a portfolio of some of the world’s most well-known and successful snacking brands. Consistent with Mondelēz International’s purpose to create more moments of joy for consumers, providing an authentic, delicious indulgence has been at the heart of Tate’s Bake Shop since Kathleen first opened her storefront nearly two decades ago. Now, together with Mondelēz International, we’ll have the opportunity to take Tate’s to the next level and offer our cookies and baked treats to many more consumers across North America.”

Mondelēz International will operate Tate’s as a separate standalone business, with its senior leadership continuing to run the business as well as a continuation of production at its current manufacturing facility.

The acquisition is expected to be completed during the summer of 2018.