Nestlé to sell U.S. confectionery business to Ferrero for $2.8 billion

The transaction is expected to be final by the end of the first quarter of 2018.

Nestlé Crunch
Nestlé Crunch

NestlĂ© will sell its U.S. confectionery business to Ferrero for USD2.8 billion in cash. Nestlé’s 2016 U.S. confectionery sales reached about USD 900 million. The transaction is expected to close around the end of the first quarter of 2018.  

Accordign to NestlĂ© CEO Mark Schneider, "This move allows NestlĂ© 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. confectionery business represents about three percent of U.S. NestlĂ© 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.-focused confectionery brands only and does not include Nestlé’s Toll House baking products, a growth brand the company will continue to develop. NestlĂ© remains committed to growing its international confectionery activities, particularly the KitKat brand.

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