22 January 2018

ACQUIRE - Ferrero Buys Nestle's US Candy Business for US$2.8B Cash

Ferrero the Maker of Nutella, Kinder and Ferrero Rocher Expands to Become 3rd Largest US Confectioner


FerreroFerrero SpA the Italian company has sought to expand its footprint in the US. This acquisition is expected to add US$900M to Ferrero's US revenues annually when the transaction closes in March.


The Nestlé US unit, is being sold as the Swiss company seeks to shed candy and sugar products in favor of items such as coffee and pet food where it leads the market.


Image result for nestle logosNestlé CEO Mark Schneider commented: 
"With Ferrero we have found an exceptional home for our U.S. confectionery business where it will thrive. At the same time, this move allows Nestlé to invest and innovate across a range of categories where we see strong future growth and hold leadership positions, such as pet care, bottled water, coffee, frozen meals and infant nutrition."

Nestlé says its U.S. confectionery business represents about three percent of U.S. Nestlé Group sales. The group sells popular local chocolate brands such as Butterfinger, Crunch, BabyRuth, 100Grand, Raisinets, Chunky, OhHenry! and SnoCaps, as well as local sugar brands such as SweeTarts, LaffyTaffy, Nerds, FunDip, PixyStix, Gobstopper, BottleCaps, Spree and Runts.

About Ferrero:
Ferrero has grown from simple beginnings as a family bakery located in Alba, a town in the Piedmont region of Italy. From a small local business in 1946, Ferrero has grown to become the 3rd largest chocolate and confectionery producer in the world. Ferrero is also the largest producer and distributor of hazelnuts in the world.

About Nestlé:
With sales of CHF$26.7B in 2016, the U.S. is Nestlé’s largest market. Nestlé products can be found in 97 percent of U.S. households under brands such as Purina, Nestlé Pure Life, Coffee-Mate, Gerber and Stouffer’s. The company employs 50,000 people in more than 120 locations across the U.S., including 77 factories and 10 R&D centers.

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