The Kellogg Company has sold its cookie, fruit and fruit flavoured snack, ice cream cone and piece crust businesses to confectionary company The Ferrero Group for $1.3 billion.
The deal allows Ferrero to strengthen its position in the North American Market with the acquired businesses generating sales of around $900 million in 2018 alone.
The acquisition also gives Ferrero access to a number of popular brands in the cookie category, including Keebler, Famous Amos cookies, Mother’s and Murray sugar free cookies, as well as Little Brownie Bakers – suppliers of cookies to the Girl Scouts.
Ferrero will also acquire the Kellogg fruit snacks business, including Stretch Island and Fruity Snacks along with Keebler’s ice cream cones and pie crust products.
As part of the acquisition, Ferrero will also take ownership of six owned US food manufacturing facilities from Kellogg as well as a leased manufacturing facility in 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.
Lapo Civiletti, CEO of the Ferrero Group, added: “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 capitalise on exciting new growth opportunities in the world’s largest cookies market.”
