INTERNATIONAL -- The Ferrero Group, the owner of such brands as Nutella, Kinder and Tic Tac, has entered into an agreement to acquire the Ferrara Candy Co. from the private equity company L Catterton. Terms of the agreement were not announced.
Also read, U.S. Candy Maker Plans Bid for Nestle's U.S. Candy Business
Based in Oakbrook Terrace, Ill., the Ferrara Candy Co. is a manufacturer of gummies and seasonal candies. Brands owned by the company include Brach’s, RedHots, Trolli, Black Forest Organic and Sathers.
“With this acquisition, we are continuing to increase our overall footprint and product offering in the important U.S. market, establishing a presence in new confectionery categories with attractive growth prospects, including gummy and seasonal candies,” said Giovanni Ferrero, executive chairman of the Ferrero Group. “We look forward to continuing to grow the Ferrara business, investing in its brands to support expansion plans, leveraging its U.S. manufacturing plants and distribution centers, and creating opportunities for its talented people.”
Ferrero plans to run Ferrara as a separate unit and to keep the company’s headquarters in Oakbrook Terrace. With the acquisition comes several assets, including four manufacturing plants in Bellwood and Forest Park, Ill., and Reynosa and Vernell, Mexico; two distribution centers in Bolingbrook, Ill., and Grand Prairie, Texas; and an engineering and R.&D. center in Bellwood. Ferrero intends to maintain and leverage this existing footprint with no further planned consolidation, the company said.
“We are pleased to announce this agreement with Ferrero, which will enable the continued growth and momentum behind our iconic and well-loved brands,” said Todd Siwak, chief executive officer of Ferrara. “We have long admired Ferrero’s core values of loyalty and trust, respect and responsibility, integrity, and commitment to quality, which align closely with our passion for bringing smiles to generations of candy lovers. Joining forces with Ferrero gives us the opportunity to accelerate our growth plans in the U.S. and international markets and share best practices as part of a larger, stronger organization.”
The acquisition is subject to closing conditions and regulatory approvals. It is expected to close in the fourth quarter of 2017.
SOURCE Keith Nunes, Food Business News
News & Updates
Stay informed with the latest news around foodservice, agriculture and other related food news.