Ferrero buys Nestlé’s US confectionery business

Global confectionery group Ferrero and its affiliated companies have completed the acquisition of Nestlé USA’s confectionery business for $2.8bn.

In January, Ferrero entered into a definitive agreement to acquire Nestlé’s confectionery business in the US.

Ferrero will now have access to Nestlé’s chocolate brands including Butterfinger, BabyRuth, 100Grand, Raisinets, Wonka, and certain sugar brands that include SweeTarts, LaffyTaffy and Nerds.

Ferrero executive chairman Giovanni Ferrero said: “We are pleased to welcome Nestlé USA’s confectionery brands and its talented employees to Ferrero.

“This outstanding portfolio of iconic brands with rich histories and tremendous brand awareness is a strong addition to Ferrero’s growing US platform, which includes the recently acquired Ferrara Candy Company and Fannie May Confections brands.

“With our substantially increased scale and broader offering of high-quality products across the chocolate snack, sugar confectionery and seasonal categories, Ferrero is poised for continued growth in the key US market.”

Upon completion, Ferrara Candy Company will be managing Nestlé USA’s three confectionery manufacturing facilities in Illinois as well as associated office space in California.

A Ferrero affiliated company acquired Ferrara Candy last year, which offers brands such as Trolli, Brach’s and Black Forest Gummies.

Ferrero CEO Lapo Civiletti said: “This is an important moment for the Ferrero Group, and we are confident that our commitment to deliver value to North American consumers and customers will be strongly enhanced by the addition of these powerful brands to our portfolio.”

The deal will make Ferrero the third-largest confectionery company in the US market.

Ferrero entered the US market in 1969 by introducing Tic Tac breath mints, and currently it offers a wide range of products including Ferrero Rocher pralines, Nutella hazelnut spreads, and the Fannie May and Harry London chocolate brands.