Nestle selling U.S. candy business to Nutella maker Ferrero for US$2.8B
by The Associated Press
The Italy-based company will take over the rights to chocolate brands such as Butterfinger and Crunch
NEW YORK—Swiss food and drink giant Nestle is selling its U.S. candy business to Italy’s Ferrero for about $2.8 billion in cash. Ferrero will take over iconic chocolate brands Butterfinger and Crunch bars, as well as the sugary Nerds, SweeTarts and FunDip.
After a review of its portfolio last summer, Nestle hinted that it might sell its U.S. business, with its eye on higher-growth areas like pet care, coffee and infant nutrition.
In September, Nestle announced that it bought a majority stake in Blue Bottle Coffee, a high-end coffee company. Other Nestle brands include Purina, Gerber and Stouffer’s.
Nestle, based in Switzerland, says its U.S. candy business accounts for about 3 per cent of its U.S. division’s sales.
The deal is expected to close at the end of the first quarter.