Ferrero snaps up Kellogg's snack and biscuits business

Ferrero has beaten off a rival bid from the US firm Hostess Brands to acquire Kellogg Company’s iconic cookie, fruit and fruit-flavoured snack, ice cream cone and pie crust businesses.

Image credits: Ferrero

Worth $1.3 billion (€1.16 billion), this latest US deal enables the Alba, Italy-based group to further strengthen its overall footprint and product offerings in the North American market, where it already successfully controls other brands such as Nestlé’s confectionery business, Fannie May and Ferrara Candy Company.

Specifically, Ferrero will acquire the brands Keebler, Famous Amos, Mother’s, Murray, Little Brownie Bakers, Stretch Island and Fruity, a business that generated no less than $900 million in 2018.

The deal also includes six US food manufacturing facilities owned by the Kellogg group across the US and a leased manufacturing plant in Baltimore, Maryland. The transaction is expected to close by the end of July.