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Home / Business / Kellogg to sell Keebler and Famous Amo's business to Nutella owner Ferrero

Kellogg to sell Keebler and Famous Amo's business to Nutella owner Ferrero



Kellogg announced Monday to sell its Keebler, Famous Amos and fruit snack businesses to Nutella owner Ferrero for $ 1.3 billion.

946, the company first entered the American market in 1969 with its Tic Tac coins, which this year has built its foot, bought Ferrara Candy Company For $ 1 billion and Nestle's US candy business for $ 2.8 billion, there are now many brands with Butterfinger, Sweetarts and Crunch. Kellogg's cookie business has been neglected in broader food business portfolios. It is planned to pour the resources to reinvest and modernize these brands. Already it has rolled out a "better butterfinger" with larger peanuts, more cocoa and milk and no hydrogenated oils.

"We acquire a portfolio of well-established brands that consumers love, with very strong market positions across their respective categories, allowing us to diversify the portfolio significantly and capitalize on exciting new growth opportunities in the world's largest cookies market," said Ferrero CEO Lapo Civiletti. In a statement,

Ferrero also buys six US food production plants across the United States and a leased production facility in Baltimore.

Meanwhile, Kellogg reports its portfolio to focus on brands it can revive, such as Pringles, Cheez. Its and Rice Krispies Treats, shares in Kellogg, which have a market value of $ 19.72 billion, are down to nearly 11 percent over the past year.

"This provision is another act we have taken to transform and focus our portfolio, wh ich will lead to reduced complexity, more targeted investment and better growth, "Kelloggs manage CEO Steve Cahillane in a statement.

"Deciding these big brands was not an easy decision, but we are pleased that they are moving to an outstanding company with a portfolio where they will have the focus and resources to grow."

The Corn Flakes owner bought Keebler in 2001 for $ 4.4 billion. At that time, part of the drawing was her chef's "direct store delivery" platform, whereby employees place the company's own products in the stores, instead of from warehouses. So-called DSD gives a food company more control over ensuring the correct display in grocery stores and convenience stores. But as the sales of products that cookies have fallen, it is less economical. Kellogg has since dropped DSD distribution .

Evercore served as a leading financial advisor to Kellogg, while Goldman Sachs acted as a co-advisor. Wachtell, Lipton, Rosen & Katz gave legal advice to Kellogg.

JP Morgan Securities served as financial adviser to Ferrero, while Davis Polk & Wardwell provided legal counsel.

Watch: Kellogg explores the sale of cookies and fruit


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