Ferrero agrees to acquire US confectionery company Ferrara

Italian confectionery group Ferrero has entered into a definitive agreement through its subsidiary to acquire US-based non-chocolate confectionary company Ferrara Candy from private equity firm L Catterton for an undisclosed sum.

Completion of the transaction is subject to customary closing conditions and regulatory approvals, and the deal is expected to close in the fourth quarter this year.

Ferrara Candy is reported to be the third largest company in the US to produce gummy and seasonal candies under various brands such as Trolli, Brachs, and Black Forest Organics.

Ferrara chief executive officer Todd Siwak said: “We are pleased to announce this agreement with Ferrero, which will enable the continued growth and momentum behind our iconic and well-loved brands.

“We have long admired Ferrero’s core values of loyalty and trust, respect and responsibility, integrity, and commitment to quality, which align closely with our passion for bringing smiles to generations of candy lovers.

“Joining forces with Ferrero gives us the opportunity to accelerate our growth plans in the US and international markets and share best practices as part of a larger, stronger organisation.”

Ferrero will continue to operate Ferrara as a separate unit and will retain its headquarters in Oakbrook Terrace, Illinois.

Ferrara has strengthened its manufacturing and distribution footprint with four plants located in Bellwood, Forest Park in Illinois, as well as Reynosa and Vernell in Mexico.

It also has two distribution centres in Bolingbrook, Illinois and Grand Prairie, Texas, and an engineering and R&D centre in Bellwood, Illinois.

The Italian confectioner intends to maintain and leverage this existing footprint with no further planned consolidation.