Ferrero Continues to Strengthen its Position in the North American Market


The Ferrero Group and its related companies ("Ferrero"), a global confectionary 
group, today announced a definitive agreement pursuant to which it will acquire 
the cookie, fruit and fruit-flavored snack, ice cream cone and pie crust 
businesses from Kellogg Company for $1.3 billion (or EUR1.16 billion at current 
exchange rates). These businesses generated sales of approximately $900 million 
in 2018.

Ferrero will acquire a strong portfolio of beloved brands in the cookie 
category, including the iconic cookie brand Keebler(R), top selling on-the-go 
Famous Amos(R) cookies, the premium family cookie brand Mother's(R), and 
Murray(R) sugar free cookies, as well as Little Brownie Bakers(R), supplier of 
cookies to the Girl Scouts. Ferrero will also acquire the Kellogg fruit snacks 
business, including Stretch Island(R) and Fruity Snacks along with Keebler's(R) 
ice cream cones and pie crust products.

Since 2017, Ferrero has acquired several U.S. brands and businesses, and, with 
this transaction, Ferrero will enter into new strategic product categories and 
will further strengthen its position in the North American market.

Ferrero will also acquire from Kellogg six owned U.S. food manufacturing 
facilities located across the country in Allyn, Washington, Augusta, Georgia, 
Florence and Louisville Kentucky, and two plants in Chicago, Illinois; as well 
as a leased manufacturing facility in Baltimore, Maryland. 

"Kellogg Company's cookie, fruit snack, ice cream cone and pie crust 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. "With this 
transaction, I look forward to bringing many iconic Kellogg brands into the 
Ferrero portfolio, to welcoming our new colleagues to the extended Ferrero 
community, and to continuing Ferrero's strong track record of growing brands, 
as we have through our successful acquisitions of Fannie May, Ferrara Candy 
Company, and the former Nestle U.S. confectionary business. 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." 

Lapo Civiletti, CEO of the Ferrero Group, said, "We are acquiring a portfolio 
of well-established brands that consumers love, with very strong market 
positions across their respective categories, allowing us to significantly 
diversify our portfolio and capitalize on exciting new growth opportunities in 
the world's largest cookies market."  

Todd Siwak, CEO of Ferrara Candy Company, commented, "The acquisition presents 
an exciting opportunity to advance our strategic growth objectives and we look 
forward to sharing our plans for the business with our customers, suppliers and 
other partners in the coming weeks and months, and welcoming our new colleagues 
from Kellogg."

The transaction, subject to customary closing conditions and regulatory 
approvals, is expected to close in the second half of the year.

JP Morgan Securities plc and Davis Polk & Wardwell LLP served as advisors to 
Ferrero.  

About Ferrero

Founded as a family business in Alba, Italy in 1946, Ferrero is the 
third-largest company in the global chocolate confectionary market, with global 
sales of over $12 billion, distribution across over 170 countries, and a 
workforce of more than 30,000 people across 55 countries.

Ferrero entered the U.S. in 1969 with Tic Tac(R) breath mints and is now also 
known for bringing U.S. families simple joy through quality products including 
FERRERO ROCHER(R) fine hazelnut chocolates, NUTELLA(R) The Original Hazelnut 
Spread(R), KINDER JOY(R) and FANNIE MAY chocolates. For more information, 
follow us at @FerreroUSA. 

About Ferrara Candy Company

Ferrara Candy Company, a related company of The Ferrero Group, is an industry 
leader in U.S. confections and one of the fastest growing confections companies 
in the country. A passionate team of more than 4,000 employees work together to 
share delight in every bite through leading brands that have shaped the 
confections market for more than 100 years. Our diverse portfolio of nearly 35 
brands includes SweeTARTS(R), Trolli(R), Brach's(R), Black Forest(R), 
Butterfinger(R), CRUNCH(R), Laffy Taffy(R) and NERDS(R), along with iconic 
favorites like Lemonhead(R), Red Hots(R) and Now and Later(R). Headquartered in 
Chicago, the company has an operational network of manufacturing, distribution 
and R&D facilities across North America. Learn more at www.ferrarausa.com.

SOURCE Ferrero