Ferrero to Acquire Nestle's U.S. Confectionary Business

PR71916

SINGAPORE, Jan. 17, 2018 /PRNewswire=KYODO JBN/ --

Ferrero Is the Third-Largest Company in the Global Chocolate Confectionary

Market and this U.S. Transaction Will Strengthen its Worldwide Position

Will Become Third-Largest Confectionary Company in the U.S., Reflecting Strong

Commitment to Growth in a Key Strategic and Attractive Market

Will Enhance Product Portfolio with Range of Iconic Chocolate and Sugar

Confectionary Brands

Will Expand Presence in Highly Complementary Chocolate Snack and Seasonal

Categories

The Ferrero Group and its affiliated companies ("Ferrero"), a global

confectionary group, today announced a definitive agreement pursuant to which

it will acquire the U.S. confectionary business from Nestle for $2.8 billion in

cash. Nestle's U.S. confectionary business generated sales of approximately

$900 million in 2016.

Ferrero will acquire more than 20 American brands with a rich heritage and

strong awareness, including iconic chocolate brands such as Butterfinger(R),

BabyRuth(R), 100Grand(R), Raisinets(R), Wonka(R) and the exclusive right to the

Crunch(R) brand for confectionary and certain categories in the U.S., as well

as sugar brands such as SweeTarts(R), LaffyTaffy(R), and Nerds(R).

With this transaction, Ferrero will become the third-largest confectionary

company in the U.S. market where it is best known for Tic Tac(R) breath mints,

Ferrero Rocher(R) pralines, Nutella(R) hazelnut spreads, the Fannie May and

Harry London chocolate brands, and the Ferrara Candy Company, which was

recently acquired by a Ferrero affiliated company and whose portfolio of brands

includes Trolli(R), Brach's(R) and Black Forest(R) Gummies.

Ferrero will acquire Nestle's U.S. manufacturing facilities in Bloomington,

Franklin Park and Itasca, Illinois, and the confectionary-related employees,

and will continue to operate through the offices in Glendale, California, as

well as from its other current locations in Illinois and in New Jersey.

Giovanni Ferrero, Executive Chairman of the Ferrero Group, said, "We are very

excited about the acquisition of Nestle's U.S. confectionary business, which

has an outstanding portfolio of iconic brands with rich histories and

tremendous awareness. In combination with Ferrero's existing U.S. presence,

including the recently acquired Fannie May Confections Brands and the Ferrara

Candy Company, we will have substantially greater scale, a broader offering of

high-quality products to customers across the chocolate snack, sugar

confectionary and seasonal categories, and exciting new growth opportunities in

the world's largest confectionary market. We look forward to welcoming the

talented team from Nestle to Ferrero and to continuing to invest in and grow

all of our products and brands in this key strategic and attractive market."

"Our commitment to deliver value to the North American consumers and customers

will be strongly enhanced by the arrival in our portfolio of such powerful

confectionary and chocolate brands," said Lapo Civiletti, CEO of the Ferrero

Group.

The transaction is subject to customary closing conditions and regulatory

approvals and is expected to close around the end of the first quarter of 2018.

Credit Suisse Securities, Davis Polk and Wardwell LLP and Lazard 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, which have

become an icon in the breath mint market, and subsequently introduced Ferrero

Rocher(R) pralines and Nutella(R) hazelnut spread to the U.S. market. Ferrero

recently acquired U.S. chocolate company Fannie May Confections Brands, which

through its Fannie May and Harry London brands provides offerings across key

categories including chocolate bars, pralines and other snacks, as well as

Ferrara Candy Company, a leader in gummy and seasonal confectionary with brands

such as Trolli, Brach's and Black Forest.

Contact

Matt Pearman

LEWIS

matt.pearman@teamlewis.com

+65 6571 9144 (direct)

+65 9772 3299 (mobile)

SOURCE:  Ferrero