Headquartered in Switzerland, Nestlé agrees to sell its U.S. confectionery business to Italy based Ferrero for $2.8 billion in cash. Representing about three percent of U.S. Nestlé Group sales, Nestlé’s U.S. confectionery business includes popular brands of chocolate such as Butterfinger, Crunch, BabyRuth, 100 Grand, Raisinets, Chunky, OhHenry! and SnoCaps, as well as local sugar brands such as SweeTarts, LaffyTaffy, Nerds, FunDip, PixyStix, Gobstopper, BottleCaps, Spree and Runts. Nestlé’s 2016 U.S. confectionery sales reached about USD 900 million and the transaction is expected to close around the first quarter of 2018. The transaction is yet to receive the completion of customary approvals and closing conditions.
According to Nestlé CEO Mark Schneider:
“With Ferrero we have found an exceptional home for our U.S. confectionery business where it will thrive. At the same time, this move allows Nestlé to invest and innovate across a range of categories where we see strong future growth and hold leadership positions, such as pet care, bottled water, coffee, frozen meals and infant nutrition.”
The transaction doesn’t include Nestlé’s iconic Toll House baking products which is a strategic growth brand but only is limited to U.S. focused confectionery brands. Nestlé is still committed to growing its international confectionery brands such as KitKat around the world.
U.S is Nestlé’s largest market with sales around $27 billion in 2016 and its products can be found in 97 percent of U.S. households with brands such as Purina, Nestlé Pure Life, Coffee-Mate, Gerber and Stouffer’s. The company employs 50,000 people in more than 120 locations across the US including 77 factories and 10 R&D centers.
Founded in 1866, Nestlé is the world’s largest food and beverage company that operates in 191 countries around the world. Nestlé has more than 2000 brands that enrich people’s lives and help people live a better and healthier future.
Nestlé employs around 50,000 people in more than 120 locations across the US in its 77 factories and 10 R&D centers. It’s U.S. business can be categorized into eight main categories namely: Nestlé USA, Nestlé Waters North America, Nestlé Nutrition, Nestlé Professional, Nespresso, Nestlé Health Science, Nestlé Skin Health and Nestlé Purina PetCare Company.
Manufacturer of chocolate and other confectionery products, Ferrero S.P.A produces candy products, bakery products, snacks, spreads, mints and drinks. Headquartered in Italy, Ferrero S.PA serves its customers internationally.