Ferrero To Acquire Kellogg's Keebler, Famous Amos And Fruit Snacks In $1.3 Billion Deal

Posted On: 4/2/2019

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CHICAGO -- Global confectionary giant Ferrero Group has agreed to acquire Kellogg Co.'s cookie and fruit snack businesses for $1.3 billion. These businesses generated sales of approximately $900 million in 2018. The transaction is expected to close in the second half of the year.
The deal includes Kellogg's iconic Keebler, Famous Amos, Mother's and Murray sugar-free cookies, and Little Brownie Bakers, supplier of cookies to the Girl Scouts. Ferrero will also acquire the Kellogg fruit snacks business, including Stretch Island and Fruity Snacks, along with Keebler's ice cream cones and pie crust products.
Since 2017, Ferrero, with global headquarters in Luxembourg, Belgium and U.S. headquarters in Chicago, has acquired several U.S. brands and businesses, including Fannie May, Ferrara Candy Co., and the former Nestlé U.S. confectionary business. With this transaction, it will enter into new product categories and will further strengthen its position in the North American market.
Ferrero will also acquire from Kellogg six U.S. food manufacturing facilities located across the country in Allyn, WA; Augusta, GA; Florence and Louisville, KY; Chicago, IL; and Baltimore, MD.
"We are acquiring a portfolio of well-established brands that consumers love, with very strong market positions across their respective categories, allowing us to significantly diversify our portfolio and capitalize on exciting new growth opportunities in the world's largest cookies market," said Ferrero Group chief executive Lapo Civiletti.
Founded as a family business in Alba, Italy in 1946, Ferrero is the third-largest company in the global chocolate confectionary market, with global sales of over $12 billion, distribution across over 170 countries, and a workforce of more than 30,000 people across 55 countries.
Ferrero entered the U.S. in 1969 with Tic Tac breath mints. Its brands include Ferrero Rocher hazelnut chocolates, Nutella, and through its recent acquisitions, SweeTarts, Trolli, Brach's, Black Forest, Butterfinger Crunch, Laffy Taffy and Nerds, Lemonhead, Red Hots and Now and Later.
The company has an operational network of manufacturing, distribution and R&D facilities across North America.