2018: The year’s biggest Food Processing Technology stories

Ferrero agrees to acquire Nestlé’s confectionery business in US

Global confectionery group Ferrero signed a definitive agreement with Nestlé to acquire its US confectionary business for $2.8bn in cash.

Under the deal, Ferrero will be acquiring chocolate brands such as Butterfinger, BabyRuth, 100Grand, Raisinets, Wonka and certain sugar brands that include SweeTarts, LaffyTaffy and Nerds.

Ferrero will also have an exclusive right over the Crunch brand for confectionary and certain categories in the US.

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Fresh Del Monte agrees to acquires Mann Packing in US

Global producer and distributor of fresh and fresh-cut fruit and vegetables Fresh Del Monte Produce acquired California’s vegetable products processor and supplier Mann Packing through its North American subsidiary, Del Monte Fresh Produce (Del Monte).

As per the deal, Del Monte agreed to acquire Mann Packing for an aggregate consideration of approximately $361m in cash.

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Campbell completed Snyder’s-Lance acquisition for $6.1bn

The Campbell Soup Company (Campbell’s) completed the purchase of Snyder’s-Lance for $50 per share, which takes the enterprise value to around $6.1bn.

Campbell’s combined the Pepperidge Farm and Snyder’s-Lance portfolios to create a unified snacking entity in the US called Campbell Snacks.

The new business is led by US Biscuits and Snacks former president Carlos Abrams-Rivera. He will report to Luca Mignini, president of the Global Biscuits and Snacks subsidiary.

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Walmart Canada aims for zero food waste by 2025

Walmart Canada unveiled its plan to achieve zero food waste by 2025 in its operations, in accordance with the Zero Waste International Alliance guidelines.

In order to address this issue, the retail company will be providing C$19m ($15m) in funding through the Walmart Foundation in order to support Canadian initiatives and research to reduce food waste along the food supply chain.

Walmart Canada president and CEO Lee Tappenden said: “We are stepping up in the fight against food waste and hunger. I’m very proud of our comprehensive, 360° approach to tackle these issues. In addition to the Walmart Foundation’s significant funding, Walmart Canada’s operational initiatives, food donations and philanthropy will help to further reduce food waste and food insecurity in Canada.”

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IFF agrees to acquire Frutarom for $7.1bn

US-based International Flavors & Fragrances (IFF) agreed to acquire Israel-based firm Frutarom in a cash and stock transaction valued at nearly $7.1bn, which also included the assumption of Frutarom’s net debt.

Frutarom produces and distributes flavours, savoury solutions and natural ingredients to more than 150 countries worldwide.

The company’s shareholders received $71.19 in cash and 0.249 of a share of IFF common stock for each Frutarom share held under the deal.

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Unilever completes sale of spreads business to KKR for €6.825bn

Global food company Unilever completed the sale of its spreads business to private investment firm KKR for a sum of €6.825bn on a cash-free, debt-free basis.

Unilever previously received a binding offer from KKR to purchase its global Spreads business in December last year.

At that time, Unilever CEO Paul Polman said: “In April of this year, we set out our 2020 programme to accelerate sustainable value creation.”

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BASF completes vegetable seeds business acquisition from Bayer for $7.6bn

German chemical firm BASF completed the acquisition of Bayer’s global vegetable seeds business, which operates under the brand name Nunhems.

The closure completed BASF’s acquisition of a range of businesses and assets with combined 2017 sales of €2.2bn, which Bayer offered to divest as part of its takeover of Monsanto.

BASF initially signed the agreement to purchase further businesses and assets from Bayer in April, which built on a deal signed in October 2017 to acquire significant parts of Bayer’s seed and non-selective herbicide businesses for €5.9bn.

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Arla Foods to build innovation centre in Denmark

Danish food company Arla Foods is planning to build an innovation centre in Nr Vium, Denmark, with a focus on whey.

Built with an investment of €36.3m, the new innovation centre will be part of Arla Foods Ingredients (AFI), a subsidiary of Arla, and also will house scientists and innovators. The centre is set to open in 2021.

Scientists and innovators will be engaged in discovering and delivering new ways of using milk and whey to serve the needs of the world’s growing population.

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Conagra completes acquisition of Pinnacle Foods for $10.9bn

US-based packaged foods company Conagra Brands completed the acquisition of Pinnacle Foods for $10.9bn.

The deal was concluded after fulfilling terms and conditions, as well as obtaining approval from Pinnacle Foods’ shareholders.

Conagra Brands president and CEO Sean Connolly said: “Expanding Conagra Brands’ portfolio through the acquisition of Pinnacle Foods creates a tremendous opportunity to drive profitable growth and shareholder value by further leveraging our proven approach to innovation, brand-building, operational excellence and deep customer relationships.

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Hershey completes acquisition of Pirate Brands for $420m

US-based food snacks manufacturer The Hershey Company purchased Pirate Brands from B&G Foods for $420m.

Hershey acquired various Pirate brands including Pirate’s Booty, Smart Puffs and Original Tings.

The Hershey Company chief growth officer Mary Beth West said: “We are thrilled to have the fast-growing Pirate’s Booty brand as part of the Hershey product portfolio.

“More and more consumers are seeking great-tasting snacks with clean labels and no artificial flavours, colours or preservatives, and Pirate’s Booty fits this need. We are looking forward to growing the full Pirate Brands portfolio in the years to come.”