Italy's Ferrero to buy biscuit businesses of Kellogg for $1.3 billion

Italian chocolate giant Ferrero said Monday it was buying the biscuit and snack businesses of the American Kellogg Company for $1.3 billion (1.16 billion euros).

"The Ferrero Group... will acquire the cookie, fruit and fruit-flavored snack, ice cream cone and pie crust businesses from Kellogg Company," which generated sales of approximately $900 million in 2018, it said.

The brands Ferrero will acquire include popular Keebler cookies as well as Famous Amos and Murray Sugar-Free cookies and fruit snacks such as Stretch Island.

Ferrero, founded as a family business in 1946 and now the third-largest company in the global chocolate confectionery market, has acquired several US brands and businesses since 2017.

The company behind Ferrero Rocher and the hazelnut spread Nutella said it would also be buying from Kellogg six food manufacturing facilities across the US, from Washington to Kentucky, as well as two plants in Chicago.

The Kellogg biscuit 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.

"We have great respect for Kellogg, its legacy and values, and are proud that Kellogg has chosen Ferrero as a good home for these businesses," he said in a statement.

Source:-https://retail.economictimes.indiatimes.com/news/food-entertainment/grocery/italys-ferrero-to-buy-biscuit-businesses-of-kellogg-for-1-3-billion/68680374