Ferrero confirms $1.3 billion deal for Kellog Company’s cookie and snacks business
The Italian-headquartered Ferrero Group has agreed to acquire the cookie, fruit and fruit-flavoured snack, ice cream cone and pie crust businesses of the Kellogg Company for $1.3 billion (€1.16 billion).
As the confectionery giant reported, the two newly-purchased businesses generated sales of approximately $900 million in 2018, further adding to its assets in American territories.
Ferrero will acquire a strong portfolio of well established brands in the cookie category, including the iconic cookie brand Keebler, top selling on-the-go Famous Amos cookies, the premium family cookie brand Mother’s, and Murray sugar free cookies, as well as Little Brownie Bakers, supplier of cookies to the Girl Scouts. In addition, the confectionery group will also gain the Kellogg fruit snacks business, including Stretch Island and Fruity Snacks along with Keebler’s ice cream cones and pie crust products.
Since 2017, Ferrero has acquired several U.S. brands and businesses, and, with this transaction, Ferrero will enter into new strategic product categories and will further strengthen its position in the North American market.
Ferrero will also acquire from Kellogg six owned U.S. food manufacturing facilities located across the country in Allyn, Washington, Augusta, Georgia, Florence and Louisville Kentucky, and two plants in Chicago, Illinois; as well as a leased manufacturing facility in Baltimore, Maryland.
“Kellogg Company’s cookie, fruit snack, ice cream cone and pie crust businesses are an excellent strategic fit for Ferrero as we continue to increase our overall footprint and product offerings in the North American market.” said Giovanni Ferrero, executive chairman of the Ferrero Group.
“With this transaction, I look forward to bringing many iconic Kellogg brands into the Ferrero portfolio, to welcoming our new colleagues to the extended Ferrero community, and to continuing Ferrero’s strong track record of growing brands, as we have through our successful acquisitions of Fannie May, Ferrara Candy Company, and the former Nestlé U.S. confectionary business. We have great respect for Kellogg, its legacy and values, and are proud that Kellogg has chosen Ferrero as a good home for these businesses.”
Lapo Civiletti, CEO of the Ferrero Group, said, “We are acquiring a portfolio of well-established brands that consumers love, with very strong market positions across their respective categories, allowing us to significantly diversify our portfolio and capitalize on exciting new growth opportunities in the world’s largest cookies market.”