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
Carlsberg has announced the departure of its chief financial officer (CFO), Heine Dalsgaard, after six years in the position. In a statement, Carlsberg said that Dalsgaard was resigning from the post to take up the role of CFO at a private equity-backed company in a different industry.
Kellogg will split into three independent companies to focus on the snack business, Reuters reported Tuesday. The snacking portfolio will comprise the main business, while the North America cereal unit and the plant-based business will be spun off. The company is also considering a sale of the plant-based business.
The snacks giant says the acquisition will help build on its commitment to “lead the future of snacking” in key geographies worldwide. Once the transaction is completed, Mondelēz will continue to operate the Clif Bar business from its headquarters in Emeryville, California. The snack giant will also continue to manufacture Clif Bars’ products, which include Clif Bar, Luna and Clif Kid, at its facilities in Idaho and Indiana.