ITALY/USA: Italian confectionery giant Ferrero Group has acquired US sugar confectionery specialist Ferrara Candy from private equity firm, L Catterton.
Reports by The Wall Street Journal and Reuters estimate the cost of the deal to be around US$1.3 billion. Reuters said the US Federal Trade Commission has already cleared the acquisition which is expected to close by the end of the year.
Ferrero said the acquisition would allow it to strengthen its distribution and commercial capabilities in the US market.
Ferrero Group Executive Chairman Giovanni Ferrero commented: “We are pleased to welcome the Ferrara business, brands and people to Ferrero.
“With this acquisition, we are continuing to increase our overall footprint and product offering in the important US market, establishing a presence in new confectionary categories with attractive growth prospects, including gummy and seasonal candies.
“We look forward to continuing to grow the Ferrara business, investing in its brands to support expansion plans, leveraging its US manufacturing plants and distribution centres, and creating opportunities for its talented people.”
“With this acquisition, we are continuing to increase our overall footprint and product offering in the important US market”
Ferrara Candy Chief Executive Officer Todd Siwak added: “We are pleased to announce this agreement with Ferrero, which will enable the continued growth and momentum behind our iconic and well-loved brands. We have long admired Ferrero’s core values of loyalty and trust, respect and responsibility, integrity, and commitment to quality, which align closely with our passion for bringing smiles to generations of candy lovers.
“Joining forces with Ferrero gives us the opportunity to accelerate our growth plans in the US and international markets and share best practices as part of a larger, stronger organisation,” he said.
Chicago-based Ferrara Candy is the third-largest US non-chocolate confectionery company, with strong positions in the gummy and seasonal candies categories. Its brands include Trolli, Brachs, Lemonheads, RedHots and Black Forest Organics.
Ferrero purchased another Chicago-based chocolate, confectionery and gift company, Fannie May, from 1-800-Flowers, earlier this year.
Ferrero is expected to roll out Tic Tac gum and Kinder Joy to the US domestic market in January 2018. The company opened its first Nutella Cafe in Chicago’s Loop business and commercial area earlier this year.
