The Ferrero Group to acquire Nestle's United States confectionery unit for $2.8 billion

Nestle Butterfinger and Crunch candy bars

Nestle is selling its USA confectionery business to Italian chocolate and candy maker Ferrero for an estimated $2.9 billion, the company announced Tuesday.

Nestle US candy business registered sales of some 900 million Swiss francs in 2016, in a market worth an overall US$8 billion, according to Ibis World.

Ferrero is best known for its Ferrero Rocher chocolates, but the company also owns favorites Nutella and Tic Tacs.

The U.S. unit, home to local, mass-market names BabyRuth, Butterfinger and Crunch, has been underperforming rivals for years, suffering from consumers' preference for healthier snacks like fruit and nut bars and premium brands like Lindt.

The change of focus has prompted Nestle to bid for the vitamin and supplements business being sold by Germany's Merck after agreeing last month to buy vitamin maker Atrium Innovations.

Dave Matthews Band Will Headline Summerfest July 1
Musician Dave Mathews performs at the National Western Complex on October 10, 2016 in Denver, Colorado. Friday, Feb. 2 through LiveNation.com, Ticketmaster .com or Charge By Phone at 1-800-745-3000.

It is is expected to be completed around the end of the first quarter of 2018.

In September, Nestle announced that it bought a majority stake in Blue Bottle Coffee, a high-end coffee company. The transaction does not include Nestle's Toll House baking products. Category leaders included The Hershey Co.

Hershey was reportedly a bidder for Nestle's US candy business, but the company's pending acquisition of SkinnyPop parent Amplify Snack Brands for $1.6 billion suggests the company is moving in another strategic direction.

The sale will see Ferrero become the third-largest confectionary company in the United States market. The Alba, Italy-based company will also acquire Nestle's USA manufacturing facilities in Bloomington, Franklin Park and Itasca, Illinois.

The Ferrero Group will pay US$2.8bn (€2.28bn) in cash. "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".

Related News:

  • Cuomo's Favorabilty Gets Boost After State Of The State

    Cuomo's Favorabilty Gets Boost After State Of The State

    In November, only 45% of likely voters approved of Cuomo's job performance and 54% disapproved. The poll found that 25 percent of the 824 surveyed have been victims of sexual harassment.
    How

    How "Perfectionist" Demi Lovato Found Power and Self-Love in Posting Swimsuit Photos

    And while she's happily "finding out more about myself every day", DeGeneres was on a mission to hook her up with another star.
    Armenia ranked partly-free in fresh Freedom House report

    Armenia ranked partly-free in fresh Freedom House report

    Out of these countries, 87 (45 percent) were ranked "free, ' 59 (30 percent) as 'partly free " and 49 (25 percent) as 'not free'. The 2018 edition covers developments in 195 countries and 14 territories from January 1, 2017, through December 31, 2017.
  • Pope Urges Chile Govt to 'Preserve' and 'Listen to' Indigenous Groups

    Pope Urges Chile Govt to 'Preserve' and 'Listen to' Indigenous Groups

    Chilean President Michelle Bachelet acknowledged people had a right to protest but called for such expression to be peaceful. This could be the reason why there was a string of firebombings of churches and death threats to the Pope before his visit.
    Top Seed Nadal Eases Through to Second Round

    Top Seed Nadal Eases Through to Second Round

    Nadal will next face Leonardo Mayer on Wednesday after the Argentine overcame Chilean Nicolas Jarry 6-2 7-6 (7-1) 6-3. The Dominican, ranked 81 in the world, joked and laughed with Nadal at the net after the match point. "No problems.
    Rumor:

    Rumor: "Xiaomi Mi Max 3 Specs Surface, 6.99" Display In Tow

    The latest leak from Weibo suggests that the upcoming Mi Max 3 will come powered by a Qualcomm Snapdragon 635/Snapdragon 660 SoC. According to the leak, the Mi Max 3 is expected to launch in June 2018 at a price of CNY 1,699 (roughly Rs. 16,900).
  • Supermarket Iceland Wants to be Plastic-Free Within Five Years

    Supermarket Iceland Wants to be Plastic-Free Within Five Years

    According to the Daily Mail , the landmark move will see packaging on 1,400 product lines replaced with eco-friendly alternatives. The company said new food ranges to be released in the coming months will feature paper-based rather than plastic food trays.
    Why CW's 'Black Lightning' is the hero we need right now

    Why CW's 'Black Lightning' is the hero we need right now

    Black Lightning should come back, Gambi implies, so he can start reclaiming some of the power that's been wiped out in the plague. As the Pierce matriarch and only non-powered member of her family, Lynn is working to raise two daughters in a hard world.
    Date set for Afghanistan's maiden Test

    Date set for Afghanistan's maiden Test

    The Afghanistan board were made full members of International Cricket Council (ICC) in June along with Ireland. The series as of now will be called the India - Afghanistan Friendship Series, confirmed Choudhary.
  • Man City keen to tie up Fred deal

    Man City keen to tie up Fred deal

    The story says that Mourinho would consider Fred as a signing to help free up Paul Pogba's role in the Manchester United midfield. He told Gazetta dello Sport: "A friend gave me the news saying that City and Guardiola were interested in me".
    Monster Hunter World's First Review Score is Almost Perfect

    Monster Hunter World's First Review Score is Almost Perfect

    For the main Monster Hunter game, this is our first PC title and it's something we want to make sure we get right. Fans will be able to choose from different modes that enhance the performance, resolution or graphics.
    Australian Open 2018: Roger Federer eases into second round

    Australian Open 2018: Roger Federer eases into second round

    Day 2 of the Australian Open didn't have as many upsets as it could have, but it certainly was entertaining. Sam Querrey restored some order for the U.S. men with a 6-3, 6-4, 6-2 win over Feliciano Lopez.


Most liked

UnitedHealth Group earnings up in Q4, hikes forecast due to tax bill
Wichmann also said the company is continuing to advocate for a delay - and ultimate repeal - of the health insurance tax. Three research analysts have rated the stock with a hold rating and twenty-five have issued a buy rating to the company.

Jaguars' RB Leonard Fournette involved in multi-car crash
But the Louisiana native, who celebrates his 23rd birthday on Thursday, was able to drive himself home after. Fournette and the Jaguars will visit the Patriots on Sunday in the AFC Championship Game.

Did Sean Payton taunt fans with the 'SKOL' clap?
He turned around, looked at us, and did a mocking Skol Chant with 0:25 left after the field goal. Despite the gut punch of a loss, Payton stuck by his antic toward Vikings fans on Tuesday.

Federer wins against Bedene in Melbourne
After the match, Will Ferrell came out on the court and gave the world's greatest athlete the interview of a lifetime. RF: "They remind me of my name, it's good". "I still have some pain", said the Swiss.

Yum China (YUMC) Upgraded to "Buy" by Goldman Sachs Group Inc
The stock of MakeMyTrip Limited (NASDAQ:MMYT) has "Hold" rating given on Friday, October 30 by Deutsche Bank. Yum China Holdings, Inc., YUMC traded at a stock price of $42.68, exhibiting 2,376,600.00 shares in volume.

DeVere Group launches cryptocurrency app to meet 'soaring' demand
Having closed at the $13,819.80 on Monday, the original cryptocurrency saw a slight decline in the early hours of today's trading. Bitcoin's price index paths prices from the digital currency exchanges like Coinbase, itBit, Bitfinex and bitstamp.

Appleton Partners Inc. MA Invests $274000 in Tesla Inc (TSLA) Stock
Analysts await EPAM Systems, Inc. (NASDAQ:TSLA) has "Overweight" rating given on Friday, August 28 by Global Equities Research. Linscomb & Williams Inc. grew its stake in shares of Tesla by 1.4% in the 2nd quarter. (NASDAQ:TSLA) on Tuesday, August 22.

Merkel's coalition will finish us, SPD youth leader warns
In inconclusive national elections in September, the conservatives lost votes to the far-right Alternative for Germany (AfD) party.

General Electric to Be "Charged" on Q4 Numbers
Timber Creek Capital Management Llc bought 130,455 shares as the company's stock declined 7.64% while stock markets rallied. It dived, as 16 investors sold TCP shares while 52 reduced holdings. 46 funds opened positions while 90 raised stakes.

Welch unveils legislation to restore net neutrality
For the most part, this is just a way for Democrats to force the issue and rile up net neutrality supporters all over again. As it stands, the 50 votes that they have will lead to a tiebreaker, which will be decided by Vice President Mike Pence.

Sharapova wins on return to Australian Open
On the men's side, No. 13 Sam Querrey restored some order for the USA with a 6-3, 6-4, 6-2 win over Feliciano Lopez. There was a surprise exit for American 16th seed John Isner, who lost 6-4 3-6 6-3 6-3 to Australia's Matthew Ebden.

How Analysts Rated The Bank of Nova Scotia (NYSE:BNS) Last Week?
Vantage Investment Partners Llc increased Vanguard Index Fds (VOO) stake by 107,292 shares to 128,869 valued at $29.74M in 2017Q3. RBC Capital Markets maintained The Bank of Nova Scotia (NYSE:BNS) on Wednesday, August 31 with "Outperform" rating.

Novak Djokovic storms past Donald Young in Australian Open first round
She returned on a roll, winning the next six points to hold serve and then clinch the set. No. 27 Philipp Kohlschreiber lost to Yoshihito Nishioka in five sets.

West Ham fear Andy Carroll could leave for Chelsea
It is believed that West Ham are willing to let the 29-year-old forward go in this window, but not on loan, as Chelsea want. Conte could of course opt to deploy Hazard as a "false 9" flanked by Willian and Pedro.

Trump, Xi voice hope that inter-Korean talks could change NK behavior
According to figures published Friday by China, the USA trade deficit with Beijing grew 10 percent in 2017 to $275.8 billion. President Donald Trump speaks upon arrival for dinner at his golf club in West Palm Beach, Florida, U.S., January 14, 2018.