Ferrero has acquired Nestlé’s confectionary business for 2.8 billion dollars
Ferrero has sealed the deal in acquiring Nestlé’s confectionary business in the United States. The transaction is worth 2.8 billion dollars. According to a Ferrero press release, with this transaction, it is to become the third-largest confectionary company in the U.S. market after Hershey and Mars.
Nestlé’s U.S. confectionary business, which Ferrero is to acquire, generated sales of approximately 900 million dollars in 2016. Ferrero will acquire more than 20 popular brands, including Butterfinger, BabyRuth, 100Grand, Raisinets, Wonka and the exclusive rights to the Crunch brand for confectionary and certain categories in the U.S., as well as sugar brands such as SweeTarts, LaffyTaffy, and Nerds.
The Italian company, which is based in the Piedmont region, will acquire Nestlé’s U.S. manufacturing facilities in Bloomington, Franklin Park and Itasca, Illinois, and the confectionary-related employees. It 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 (pictured), Executive Chairman of the Ferrero Group, said, “We are very excited about the acquisition of Nestlé’s U.S. confectionary 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 confectionary market.”
With this transaction, Ferrero—as explained in a press release from the company—will become the third-largest confectionary company on the U.S. 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.