Global confectionary group, Ferrero, announced on Wednesday it will acquire the Nestle’s US candy bar line for $2.8bn in cash helping to polevault it into the third largest confectionary company in the US.
Ferrero, which has over $12bn in global sales, will gain more than 20 American familiar brands and includes chocolate brands such as Butterfinger, BabyRuth, 100Grand and Raisinets along with sweets Nerds and SweeTarts. It also acquires the exclusive right to the Crunch® brand for confectionary.
The company is best known in the US market for Tic Tac breath mints, Ferrero Rocher pralines and Nutella hazelnut spreads. The acquisition of the Nestle brands adds to the current portfolio which includes the Fannie May and Harry London chocolate brands, and the recently acquired Ferrara Candy Company.
Nestle's US manufacturing facilities in Bloomington, Franklin Park and Itasca, Illinois are also part of the deal.
Giovanni Ferrero, executive chairman of the Ferrero Group, said in a statement, “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.”
The transaction is expected to close around the end of the first quarter of 2018.