Ferrero To Acquire Nestlé US
4th February 2018 Paul Andrews
The Ferrero Group and its affiliated companies ('Ferrero'), a global confectionery group, has announced a definitive agreement pursuant to which it will acquire the US confectionery business from Nestlé for $2.8 billion in cash.
Nestlé’s US confectionery business generated sales of approximately $900 million in 2016.
Ferrero will acquire more than 20 American brands with a rich heritage and strong awareness, including iconic chocolate brands such as Butterfinger®, BabyRuth®, 100Grand®, Raisinets®, Wonka® and the exclusive right to the Crunch® brand for confectionery and certain categories in the US, as well as sugar brands such as SweeTarts®, LaffyTaffy®, and Nerds®.
With this transaction, Ferrero will become the third-largest confectionery company in the US market where it is best known for Tic Tac® breath mints, Ferrero Rocher® pralines, Nutella® hazelnut spreads, the Fannie May and Harry London chocolate brands, and the Ferrara Candy Company, which was recently acquired by a Ferrero affiliated company and whose portfolio of brands includes Trolli®, Brach’s® and Black Forest® Gummies.
Ferrero will acquire Nestlé’s US manufacturing facilities in Bloomington, Franklin Park and Itasca, Illinois, and the confectionery-related employees, and will continue to operate through the offices in Glendale, California, as well as from its other current locations in Illinois and in New Jersey.
Giovanni Ferrero, Executive Chairman of the Ferrero Group, said, “We are very excited about the acquisition of Nestlé’s US confectionery business, which has an outstanding portfolio of iconic brands with rich histories and tremendous awareness. In combination with Ferrero’s existing US presence, including the recently acquired Fannie May Confections Brands and the Ferrara Candy Company, we will have substantially greater scale, a broader offering of high-quality products to customers across the chocolate snack, sugar confectionery and seasonal categories, and exciting new growth opportunities in the world’s largest confectionery market. We look forward to welcoming the talented team from Nestlé to Ferrero and to continuing to invest in and grow all of our products and brands in this key strategic and attractive market.”
“Our commitment to deliver value to the North American consumers and customers will be strongly enhanced by the arrival in our portfolio of such powerful confectionery and chocolate brands,” said Lapo Civiletti, CEO of the Ferrero Group.
The transaction is subject to customary closing conditions and regulatory approvals and is expected to close around the end of the first quarter of 2018.