The Ferrero Group has completed its acquisition of Kellogg Co.’s cookie, fruit and fruit-flavored snack, ice cream cone and pie crust businesses.
The companies announced the transaction, which is valued at $1.3 billion, in April. With the sale, Ferrero acquired a portfolio that includes Keebler, Famous Amos, Mother’s and Murray cookies, as well as Little Brownie Bakers, supplier of cookies to the Girl Scouts of the U.S.A. Other brands in the transaction include Stretch Island and Fruit Snacks fruit flavored snacks and Keebler’s ice cream cones and pie crust products. Ferrero also acquired six food manufacturing facilities from Kellogg Co. located in Allyn, Wash.; Augusta, Ga.; Florence and Louisville, Ky.; and Chicago, as well as a leased manufacturing facility in Baltimore.
Collectively, the businesses generated approximately $900 million in sales in 2018, according to Kellogg.
“It is with great pleasure that we welcome our new colleagues and brands to Ferrero,” said Giovanni Ferrero, executive chairman of the Ferrero Group. “This iconic portfolio of beloved brands is an excellent entry into new strategic product categories for Ferrero.”
Last year, Ferrero acquired Nestle U.S.A.’s confectionery business, Fannie May Confections and Ferrara Candy Co.
Kellogg said the divesture is part of its strategic review and restructuring. The company said it will use the cash proceeds from the sale to reduce outstanding debt.
“This sale strengthens our ability to focus on the areas of our business with the biggest growth opportunities, which is a key component of our ‘Deploy for Growth Strategy,’” said Steven A. Cahillane, chief executive officer and chairman at Kellogg.
By Sam Danley
Source: Food Business News
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