The Ferrero Group is to acquire Nestlé’s U.S. confectionery business in a $2.8 billion deal that will see it become the third largest confectionery company in the US market.
Ferrero will acquire more than 20 American brands, including chocolate brands such as Butterfinger®, BabyRuth®, 100Grand®, Raisinets®, Wonka® and the exclusive right to the Crunch® brand for confectionery and certain categories in the U.S., as well as sugar brands such as SweeTarts®, LaffyTaffy®, and Nerds®.
Following the acquisition, Ferrero will become the third largest confectionery company in the U.S. market, where it is best known for Tic Tac® breath mints, Ferrero Rocher® pralines, Nutella® hazelnut spreads, and the Ferrara Candy Company.
Nestlé’s U.S. confectionery business generated sales of approximately $900 million in 2016.
Ferrero will acquire Nestlé’s U.S. manufacturing facilities in Bloomington, Franklin Park and Itasca, Illinois, as well as the confectionery-related employees, and will continue to operate through the offices in Glendale, California, along with its other current locations in Illinois and in New Jersey.
Giovanni Ferrero, executive chairman of the Ferrero Group, commented: “We are very excited about the acquisition of Nestlé’s U.S. confectionery business, which has an outstanding portfolio of iconic brands with rich histories and tremendous awareness.
“In combination with Ferrero’s existing U.S. 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 confectionary and seasonal categories, and exciting new growth opportunities in the world’s largest confectionery market.”
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.