The Ferrero Group has acquired The Kellogg Company’s biscuit and snack business for a total of $1.3 billion. The agreement will see Ferrero take over Kellogg’s cookie business as well as its fruit flavoured snacks, pie crusts and ice cream cone brands.
The transaction is set to be completed by July 2019, subject to regulatory approval. The deal will also see Ferrero acquire a number of US production facilities in Georgia, Kentucky, Chicago and Illinois.
“This divestiture is yet another action we have taken to reshape and focus our portfolio, which will lead to reduced complexity, more targeted investment, and better growth. Divesting these great brands wasn’t an easy decision, but we are pleased that they are transitioning to an outstanding company with a portfolio in which they will receive the focus and resources to grow,” said Steve Cahillane, Kellogg’s chairman and CEO.
Ferrero is continuing to strengthen its international presence. Last year saw the company purchase Nestlé’s US confectionery unit for $2.8 billion.