Nestle is selling its U.S. confectionery business to Italy’s Ferrero for an estimated $2.8 billion, the company announced on Tuesday. In 2016, Nestlé’s U.S. confectionery sales reached around USD 900 million.
According to Nestle, it’s a first big sale of Mark Schneider’s and a small step on its path towards healthier products.
Ferrero which is an Italian manufacturer of branded chocolate and confectionery products and will become the US’s third biggest confectionery maker in the U.S. and globally, according to London-based market research company Euromonitor International.
Ferrero said that will offer substantially greater scale and high-quality products to US customers.
Giovanni Ferrero, executive chairman of the Ferrero Group, said in a statement, “We are very excited about the acquisition of Nestle’s U.S. confectionery business, which has an outstanding portfolio of iconic brands with rich histories and tremendous awareness.”
Nestle’s American sweet treats include Nestle Butterfinger, Raisinets, Crunch, Baby Ruth, Chunky, OhHenry, as well as local sugar brands such as Skinny Cow, Laffy Taffy, SweeTarts, Nerds, BottleCaps, Spree, FunDip, and Gobstopper.
Last week, Nestle announced it was selling Australian chocolate bar, Violet Crumble. The company agreed to buy Atrium Innovations, a manufacturer of natural health products and now it is expanding into consumer health and bidding for the vitamin business.
The deal of selling the Nestle’s U.S. confectionery business doesn’t include the company’s global chocolate brand the Toll House baking line or KitKat.
The U.S. candy business sale is expected to close around the end of 2018’s first quarter, following the completion of customary approvals and closing conditions, Nestle said