Nestlé agrees to sell U.S. (United States) confectionery business to Ferrero
Nestlé today announced that it agreed to sell its U.S. (United States)
confectionery business to Ferrero for CHF (Swiss Francs) 2.8 billion in cash.
Nestlé’s 2016 U.S. (United States) confectionery sales reached about CHF (Swiss
Francs) 900 million. The transaction is expected to close around the end of the
first quarter of 2018 following the completion of customary approvals and
Nestlé CEO (Chief Executive Officer) Mark Schneider commented: “With Ferrero we
have found an exceptional home for our U.S. (United States) 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.”
Nestlé’s U.S. (United States) confectionery business represents about three
percent of U.S. (United States) Nestlé Group sales. It includes popular local
chocolate brands such as Butterfinger, Crunch, BabyRuth, 100Grand, Raisinets,
Chunky, OhHenry! and SnoCaps, as well as local sugar brands such as SweeTarts,
LaffyTaffy, Nerds, FunDip, PixyStix, Gobstopper, BottleCaps, Spree and Runts.
The transaction covers the U.S. (United States)-focused confectionery brands
only and does not include Nestlé’s iconic Toll House baking products, a
strategic growth brand which the company will continue to develop. Nestlé
remains fully committed to growing its leading international confectionery
activities around the world, particularly its global brand KitKat.
With sales of CHF (Swiss Francs) 26.7 billion in 2016, the U.S. (United States)
is Nestlé’s largest market. Nestlé products can be found in 97 percent of U.S.
(United States) households under 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 U.S. (United States), including 77 factories and
10 R&D (Research and Development) centers.
Source: Nestlé S.A. via GlobeNewswire