<img height="1" width="1" src="https://www.facebook.com/tr?id=769125799912420&amp;ev=PageView &amp;noscript=1">
About Our People Legal Stuff Careers
Nutrition for Hire Studies
A Nestle Butterfinger and Crunch candy bars are arranged for a photo, Wednesday, June 1, 2016, in New York. (AP Photo/Mark Lennihan)

Sweet Deal: Ferrero buys Nestle's U.S. candy business for $2.8B

Actions

0

Food and drink giant Nestle is selling its U.S. candy business to Italy’s Ferrero for about $2.8 billion in cash.

Ferrero will take over iconic chocolate brands Butterfinger and Crunch bars, as well as Nerds, SweeTarts and FunDip.

After a review of its portfolio last summer, Nestle hinted that it might sell its U.S. business, with its eye on higher-growth areas like pet care, coffee and infant nutrition.

Nestle, based in Switzerland, says its U.S. candy business accounts for about 3 percent of its U.S. division’s sales.

In a statement, Nestlé CEO Mark Schneider said, “With Ferrero we have found an exceptional home for our U.S. 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.”

Ferrero, founded in the small northern Italian town of Alba, is already the world’s No. 4 confectionery by market share and had about $12 billion in revenue in 2016. Ferrero also produces Nutella, Tic Tac, and its Ferrero Rocher bonbons.

According to the Wall Street Journal, the acquisition of Nestle follows Ferrero’s purchase of Lemonheads maker Ferrara Candy Co. for about $1.3 billion, and the much smaller Fannie May Confections last year.

Nestle, based in Switzerland, says its U.S. candy business accounts for about 3 percent of its U.S. division’s sales.

Hershey also put in a bid to buy Nestle.

Comments
Read Comments
Comments
Facebook Twitter Instagram Pinterest Linked In List Menu Enlarge Gallery Info Menu Close Angle Down Angle Up Angle Left Angle Right Grid Grid Play Align Left Search Youtube Mail Mail Angle Down Bookmark