Ferrero to acquire Nestle's confectionery business in the US

The Ferrero Group and its affiliated companies ("Ferrero"), has recently announced a definitive agreement pursuant to which it will acquire the US confectionery business from Nestle for US$2.8 billion in cash. Nestle's US confectionery business generated sales of approximately US$900 million in 2016.
Ferrero will acquire more than 20 American brands with a rich heritage and strong awareness, including iconic chocolate brands such as Butterfinger, BabyRuth, 100Grand, Raisinets, Wonka and the exclusive right to Crunch and certain categories in the US, as well as sugar brands such as SweeTarts, LaffyTaffy and Nerds.
With this acquisition, Ferrero will become the 3rd largest confectionery firm in the US with already well-known brands like Tic Tac breath mints, Ferrero Rocher pralines and Nutella hazelnut spreads amongst others. A Ferrero affiliated company has also recently acquired Ferrara Candy Company whose portfolio includes Trolli, Brach’s and Black Forest gummies.
Ferrero will acquire Nestle's US manufacturing facilities in Bloomington, Franklin Park and Itasca, Illinois, and the confectionary-related employees, and will continue to operate through the offices in Glendale, California, as well as from its other current locations in Illinois and in New Jersey.
Ferrero Group’s Executive Chairman Giovanni Ferrero said, “We are very excited about the acquisition of Nestle's US confectionery business, which has an outstanding portfolio of iconic brands with rich histories and tremendous awareness. In combination with Ferrero's existing US presence, including the recently acquired Fannie May Confections Brands and the Ferrara Candy Company, we will have substantially greater scale, a broader offering of high-quality products to customers across the chocolate snack, sugar confectionary and seasonal categories, and exciting new growth opportunities in the world's largest confectionery market. We look forward to welcoming the talented team from Nestle to Ferrero and to continuing to invest in and grow all of our products and brands in this key strategic and attractive market.”
The acquisition is subject to regulatory approvals and is expected to close by the end of first quarter 2018.
Ferrero is the 3rd largest company in the global chocolate confectionery market, with global sales of over US$12 billion and distribution across over 170 countries.