Ferrero acquires Kellogg’s snacks and biscuits units

The Italian confectionery giant Ferrero acquired two of US multinational Kellogg’s snacks and biscuits units for $1.3 billion.

Kellogg’s confirmed its intention of selling Ferrero two of its snacks and biscuits brands, Keebler and Famous Amos, less well known abroad than its iconic cornflakes. The transaction includes production facilities in Augusta, Georgia; Florence, Kentucky; Louisville, Kentucky; Allyn, Washington; and Chicago, Illinois.

Kellogg’s is cutting back on cookies and sweets as it shifts its portfolio toward products it believes have stronger growth prospects. For Ferrero, the acquisition is a way to expand its North American business.

Ferrero made the acquisition after beating out a rival bid from US Hostess Brands.

Via CNN