Food acquisition news : Italian confectionery giant Ferrero has agreed to acquire the cookie, fruit and fruit-flavored snack, ice cream cone and pie crust businesses of Kellogg’s for $1.3 billion.

As per the deal, Ferrero will acquire a cookie portfolio that includes the Keebler cookies brand, Famous Amos cookies, family cookie brand Mother’s, and Murray sugar-free cookies, and also Little Brownie Bakers, the supplier of cookies to the Girl Scouts.

The Italian confectionery giant will also acquire Stretch Island and Fruity Snacks, the fruit snacks business of Kellogg’s along with the Keebler’s ice cream cones and pie crust products as per the latest food acquisition news.

Last year, the divested cookie and fruit snack businesses of Kellogg’s generated nearly $900 million in sales.

Steve Cahillane – Kellogg’s Chairman and CEO said: “This divestiture is yet another action we have taken to reshape and focus our portfolio, which will lead to reduced complexity, more targeted investment, and better growth.

“Divesting these great brands wasn’t an easy decision, but we are pleased that they are transitioning to an outstanding company with a portfolio in which they will receive the focus and resources to grow.”

Kellogg’s said that it will retain the remaining part of its North America snacking businesses, including its crackers, wholesome snacks, salty snacks, and toaster pastries brands.

Ferrero, on the other hand, has been in the process of acquiring various US brands and businesses since 2017, and with the acquisition of Kelloggs’ cookie and fruit snack businesses, will foray into new strategic categories and will further consolidate its place in the North American market.

Giovanni Ferrero – Executive Chairman of the Ferrero, said: “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.

“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 Nestlé 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.”

As part of the deal, Ferrero will also be acquiring Kellogg’s six owned US food manufacturing facilities located in Allyn in Washington, Augusta in Georgia, Florence and Louisville in Kentucky, and two manufacturing plants in Chicago in Illinois and a leased manufacturing facility in Baltimore in Maryland.

The deal, which will be subject to customary closing conditions and regulatory approvals, is anticipated to be wrapped up in the second half of 2019.

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  Food acquisition news, Giovanni Ferrero, Kellogg Company, Steve Cahillane, USA