The food company Nestlé is parting with its US candy business - and Nutella maker Ferrero is taking action. By the end of the first quarter of 2018, the $2.8 billion deal will be completed.
Nestlé is selling its US candy business to Ferrero for the equivalent of € 2.29 billion. Nestlé had announced some time ago, to want to part with this division. The food group said the sale is expected to close by the end of the first quarter of 2018.
Previously, the usual approvals and closing conditions must be obtained and met, it said. With Ferrero they have now found a suitable partner, Nestlé boss Mark Schneider is quoted in the message. Ferrero announced that the acquisition in the US would strengthen the company's position worldwide, making Ferrero the third largest confectionery manufacturer in the US.
Nestlé's US candy business, according to the company, accounts for approximately three percent of the Nestlé group's US sales. The division, which in 2016 generated annual sales of 900 million US dollars (about 735 million euros), includes the popular chocolate bar "Butterfinger" in the USA. Nestlé competes in the US market with major rivals such as Mars, Hershey and the Milka manufacturer Mondelez.
Nestlé will continue to invest in the US and focus on innovation, Schneider announced in the announcement. This applies in particular to categories in which one has a leading position - such as products for pets, water, coffee, frozen food and baby food.
Ferrero was founded in 1946 as a family business in Italy and reportedly achieved sales of over 12 billion dollars (about 9.8 billion euros) worldwide. The company employs more than 30,000 people in 55 countries.
Source: dpa/cop
Powered by Insteem, the News on Steem