Daily Trends Now
Daily Trends Now

Nestle Sells US Confectionery Business for $2.8B

Nestle Sells US Confectionery Business for $2.8B

Ferrero, which has over $12bn in global sales, will gain more than 20 American familiar brands and includes chocolate brands such as Butterfinger, BabyRuth, 100Grand and Raisinets along with candies Nerds and SweeTarts.

Nestle said last July that it was wrapping up a review of strategic options for the US candy business and that an exit was possible.

The global confectionary group Ferrero is acquiring Nestle's confectionary business for $2.8 billion.

Nestle is the world's largest food and beverage company, with more than 2,000 brands - including baby foods, bottled water, cereal, coffee, frozen food, dairy, drinks and pet care.

The company's Toll House line of baking products will not be affected by the acquisition.

The transaction is expected to close around the end of the first quarter of 2018.

Ferrero is building its US presence at the same time that the big companies are diversifying beyond the sweets that made them famous. In early 2017, the company said that candy sales in 2016 were disappointing, and global pricing pressure had forced it to cut costs.

The U.S. chocolate industry is in tumult.

According to Nestle CEO Mark Schneider, the move allows Nestle to invest and innovate across a range of categories where it see "strong future growth and hold leadership positions".

The sale will make Ferrero the third-largest confectionary company in the USA market.According to media reports, Ferrero competed with major chocolate manufacturer Hershey and private funds, including Rhone Capital, to secure the deal.

Ferrero, a family-owned chocolate company based in Italy, had not been very active in the M&A space until it acquired Fannie May and Ferrara, the maker of Now and Later, Brach's and Red Hots, last year. It will also get its hands on the exclusive right to the Crunch brand in the US. The business represents about 3 percent of the Swiss company's US sales.

Founded as a family business in Italy in 1946, Ferrero entered the United Kingdom market in 1966 and acquired Thorntons in 2015. It has been making Nutella since 1964.

It now operates through 22 plants in some 55 countries with 32,990 employees overall, selling its products in more than 170 countries, according to the company presentation.


editors' picks

January 18, 2018
52 die in gruesome bus fire
A short circuit may have caused the fatal blaze, authorities stated at the briefing, adding that the bus was also overloaded. Local media, however, said the bus was believed to have been carrying Uzbek citizens to or from Russian Federation .

January 18, 2018
Turkey says US 'inconsistent' on Syrian border force
The YPG, however, is the main component of the US-backed Syrian Democratic Forces (SDF ), which also include Arabs. This isn't the first time Turkey has been rankled by America's reliance on Syrian Kurd fighters in Syria.

January 16, 2018
Detroit Motor Show: Ford Ranger adds Mustang power
The 2019 Ford Ranger has yet to have a specific release date, but fans are expecting more information in the coming months. Under the hood is the same 2.3-liter EcoBoost four-cylinder engine that powers the Ford Mustang sports auto .

January 15, 2018
Israel destroys Hamas cross-border tunnel: army
Hamas claimed the tunnel was used only for smuggling, a claim that was denied by the IDF. It has recently boasted of secret technology allowing it to locate and destroy them.

January 14, 2018
Jon Gruden Says Tuck Rule Still Irks Him; Raiders Have 'Unfinished Business'
Some years the rumours seemed legit, but Gruden always would come out eventually and announce he's happy to be out of coaching. No matter what our record is, we've got to continually find ways to improve. "And by far to get Jon Gruden was the toughest".

January 13, 2018
'Time Travel' Flights Take Off In 2018, Land In 2017
After a flight that lasted nine hours and 10 minutes, it landed in Honolulu, at 10:15 a.m on December 31, 2017 (Hawaiian time). The International Date Line zig-zags from the North Pole to the South Pole through the sparsely populated Pacific Ocean.

January 13, 2018
39 percent of Americans grade Trump's first year an 'F'
Another 7 percent say they should stay but not become citizens - while only 11 percent say they should get the boot. On the recently enacted Republican tax reform bill, voters disapprove of it, 52 to 32 percent.

January 13, 2018
Former Oregon Football Coach Mark Helfrich Lands With Chicago Bears
Perhaps the biggest appeal of the Colts' job is having Andrew Luck, one of the few franchise quarterbacks in the NFL . Kelly, the newly-hired UCLA coach, had interest in adding Helfrich as his offensive coordinator, according to Jahns.

January 12, 2018
Nablus: Settlers carry out attacks against Palestinians while IOF watches
A Palestinian terrorist sentenced to three to five years in Israeli prison received $580 per month. Israeli raids into Palestinian towns and villages are a near daily occurrence in the region.

January 11, 2018
Western's Weather Wrap: Winter Storm Arrives Tonight
The region, which has been nearly completely dry this winter, was expected to get as much as 4 inches of rain by early Tuesday . Temperatures are mostly in the 60s across Alabama this afternoon; the sky is mostly cloudy and showers are few and far between.