The deal will see Ferrero become the third largest confectionery company in the US, just behind market giants Hershey and Mars.
Commenting on the acquisition, Giovanni Ferrero, executive chairman of the Ferrero Group, said: “We are very excited about the acquisition of Nestlé’s US confectionery business, which has an outstanding portfolio of iconic brands with rich histories and tremendous awareness.
‘Invest in and grow’
Nestlé brands acquired by Ferrero
“We look forward to welcoming the talented team from Nestlé to Ferrero and to continuing to invest in and grow all of our products and brands in this key strategic and attractive market.”
Ferrero will acquire Nestlé’s US manufacturing facilities in Bloomington, Franklin Park and Itasca, Illinois, and the confectionery-related employees. It will continue to operate through the offices in Glendale, California, as well as from its other current locations in Illinois and in New Jersey.
Nestlé chief executive Mark Schneider said the deal would allow the company to invest and innovate in other areas in which it was already a market leader. This included bottled water, coffee, frozen meals and infant nutrition.
The global manufacturing giant said it was still committed to its international confectionery products, particularly its global brand KitKat.
Committed to international confectionery
Ferrero ceo Lapo Civiletti added: “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 confectionery and chocolate brands.”
The deal is expected to be completed by the end of March this year.
The acquisitions of Nestlé’s US confectionery business is one of a series of purchases by Ferrero since its founder, Michele Ferrero, died in 2012.
In April last year, the Nutella brand owner’s second-generation owner Giovanni Ferrero appointed the company’s first non-family chief executive.
Ferrero acquires Nestlé’s US confectionery arm – at a glance
- Deal worth $2.8bn (£2bn)
- Will Make Ferrero the third largest US confectionery company
- Ferrero will acquire all of Nestlé’s US confectionery manufacturing sites