Nestle said Tuesday it has agreed to sell its US candy business to Italy's Ferrero for CHF 2.7 billion ($2.8 billion/2.3 billion euros) in cash as the Swiss food giant shakes up its product portfolio. Ferrero, known for its Tic Tac, Nutella and Ferrero Rocher brands but which has traditionally preferred organic growth to acquisitions, will now be picking up Crunch, Butterfinger and Baby Ruth from Nestle.
The sale will make Ferrero the third-largest confectionary company in the US market Executive chairman Giovanni Ferrero said that after the acquisition the Ferrero Group "will have substantially greater scale, a broader offering of high-quality products to customers..." in the United States, the world's largest confectionary market. Nestle added it expects the deal to close by the end of March.
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