Ferrero to buy Kellogg's cookie and fruit snacks businesses

The Ferrero Group has announced it will acquire the cookie, fruit and fruit-flavoured snack, ice-cream cone and pie crust businesses from Kellogg Company for US$1.3 billion in order to strengthen its position in the North American market.

Ferrero will also acquire from Kellogg six owned US food manufacturing facilities located across the country in Allyn, Washington, Augusta, Georgia, Florence and Louisville in 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. 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 capitalise on exciting new growth opportunities in the world’s largest cookies market.”

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