Ferrero to acquire Nestlé confectionery unit for 2.8 billion dollars | Progresiv
Nestlé has agreed to sell its US confectionery business to Ferrero, in a deal worth 2.8 billion dollars in cash. The deal, which is subject to regulatory approval, is expected to be completed by the end of the first quarter of 2018. 
The unit generated around 900 million dollars in sales in 2016, accounting for 3% of Nestlé’s US sales. It owns chocolate brands such as Butterfinger, Crunch, BabyRuth, 100Grand, Raisinets, Chunky, OhHenry! and SnoCaps, as well as sugar brands such as SweeTarts, LaffyTaffy, Nerds, FunDip, PixyStix, Gobstopper, BottleCaps, Spree and Runts.
Mark Schneider, CEO of Nestlé, noted: “With Ferrero we have found an exceptional home for our US confectionery business where it will thrive. At the same time, this move allows Nestlé to invest and innovate across a range of categories where we see strong future growth and hold leadership positions, such as pet care, bottled water, coffee, frozen meals and infant nutrition.”
The deal does not include Nestlé’s iconic Toll House baking products, which the Swiss group said was “a strategic growth brand” that it will “continue to develop”. Nestlé also stressed that it “remains fully committed to growing its leading international confectionery activities around the world”, particularly KitKat. (www.kamcity.com)
