The famous candy company, Nestlé is selling its confectionery business to Ferrero for $2.8 billion US in cash.
In 2016, Nestlé reached about $900 million US in sales.
Famous for its brand name candy bars including, Butterfinger, Crunch and OhHenry! - the confectionery makes up only 3% of the U.S. Nestlé Group sales.
However, the sale only applies to U.S.-focused candy brands and Nestlé will continue to develop its iconic brands, including KitKat.
"With Ferrero we have found an exceptional home for our U.S. confectionery business where it will thrive," said Nestlé CEO Mark Schneider. "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."
Ferrero will acquire more than 20 American candy brands and as a result, will become the third-largest confectionery company in the U.S. market.
“We are very excited about the acquisition of Nestlé’s U.S. confectionery business, which has an outstanding portfolio of iconic brands with rich histories and tremendous awareness," Giovanni Ferrero, executive chairman of the Ferrero Group.
Best known for Ferrero Rocher, Kinder Eggs and Nutella, the Italian company is expected to take ownership by the end of the first quarter in 2018.
“Our commitment to deliver value to the North American consumers and customers will be strongly enhanced by the arrival in our portfolio of such powerful confectionary and chocolate brands,” said Lapo Civiletti, CEO of the Ferrero Group.
Nestlé currently employes 50,000 people in more than 120 locations across the U.S.
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