US-based food manufacturing firm Kellogg Company has completed the sale of Keebler cookies to the Ferrero Group and its related companies for $1.3bn.
The divestiture includes a portion of Kellogg’s North America snacking business, which comprises brands such as Keebler, Mother’s, Famous Amos, Murray’s and Murray’s Sugar-Free, as well as cookies manufactured for the US Girl Scouts.
Additionally, the deal includes cookies, fruit and fruit-flavoured snacks, pie crusts and ice cream cones, brands and assets associated with these businesses.
Kellogg Company chairman and CEO Steve Cahillane said: “This sale strengthens our ability to focus on the areas of our business with the biggest growth opportunities, which is a key component of our Deploy for Growth Strategy.”
The company noted that it will retain the rest of its North America snacking businesses, including its crackers, salty snacks, wholesome snacks and toaster pastries brands.
Cahillane further added: “On behalf of the entire Kellogg family, I’d like to thank our departing colleagues for their many contributions to our business over the years. “
In April, Kellogg Company signed a definitive agreement to divest certain businesses to Nutella maker Ferrero.
Ferrero also acquired six US food manufacturing facilities located across the country in Allyn, Washington, Augusta, Georgia, Florence and Louisville Kentucky from Kellogg, two plants in Chicago, Illinois, and a leased manufacturing facility in Baltimore, Maryland.
Kellogg Company intends to use cash proceeds from the sale to reduce outstanding debt.
