Food giant Nestle plans to pick a buyer for its U.S. chocolate business by the end of this week, three sources close to the matter said on Wednesday, in a deal expected to top $2.5 billion.
Italy’s Ferrero is seen as a front-runner, according to several other sources, who said that the maker of the Nutella spread was keen to boost its presence in the U.S. market, following last year’s purchase of the U.S. groups Ferrara and Fannie May.
One source said Ferrero raised its offer for Nestle’s business last week in an attempt to outbid rival Hershey.
“(Executive Chairman) Giovanni Ferrero is really committed to the deal, that’s why the group sweetened its offer to something in the area of $2.5 billion,” the source said.
Nestle and Ferrero declined to comment, Hershey was not immediately available for comment.
If successful, the deal would make Ferrero the third-biggest confectioner in the United States after Mars Inc. and Hershey, according market research provider Euromonitor.
Nestle in June said it was exploring strategic options for the business, which includes candy bar brands such as Butterfinger and Baby Ruth, and had sales of more than $900 million in 2016. It is keeping the rest of the global business, which includes KitKat and Aero.
Ferrero, which also makes Ferrero Rocher pralines and Kinder chocolate eggs, is run by Giovanni Ferrero, whose grandfather founded the firm in 1946 in the small Italian town of Alba, in Piedmont.
For many years Ferrero relied on internal growth but began making acquisitions after Giovanni became the company’s sole CEO in 2011 following the death of his brother.
By Francesca Landini, Martinne Geller, Pamela Barbaglia and Harry Brumpton
Source: Reuters
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.
