Ferrero, an Italian chocolate giant, is acquiring the biscuit and snack businesses of the American Kellogg Company for $1.3 billion. The brands that Ferrero will buy include popular Keebler cookies as well as Famous Amos and Murray Sugar Free cookies and fruit snacks like Stretch Island.
Founded in 1946, Ferrero has acquired several US brands and businesses since 2017. It is now the third-largest company in the global chocolate confectionery market.
Steve Cahillane, Chairman and Chief Executive Officer, Kellogg, said, "This divestiture is yet another action we have taken to reshape and focus our portfolio, which will lead to reduced complexity, more targeted investment, and better growth. Divesting these great brands wasn't an easy decision, but we are pleased that they are transitioning to an outstanding company with a portfolio in which they will receive the focus and resources to grow."
Giovanni Ferrero, Executive Chairman of the Ferrero Group, stated, "The Kellogg biscuit businesses "are an excellent strategic fit for Ferrero as we continue to increase our overall footprint and product offerings in the North American market."
"We have great respect for Kellogg, it's legacy and values, and are proud that Kellogg has chosen Ferrero as a good home for these businesses," he added.