Kellogg agreed to sell its cookies and fruit snack brands, including Keebler and Famous Amos, to Ferrero for US$1.3 billion, as the cereal maker refocuses on the fast-growing parts of its business, reported Bloomberg.
The all-cash transaction is expected to close by the end of July. As part of the deal, Ferrero will acquire six US food manufacturing facilities, plus a leased facility in Baltimore.
“Divesting these great brands wasn’t an easy decision,” Steve Cahillane, Kellogg’s CEO, said in a statement. It “will lead to reduced complexity, more targeted investment, and better growth.”
Ferrero, the Italian maker of Nutella spread, has been on an acquisition spree while Kellogg has been seeking to simplify its corporate structure as it struggles to ignite growth in its US cereal and snacks businesses. Kellogg announced last year it was looking for buyers for the snacks businesses as part of its strategic plan.
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