The Ferrero Group has agreed to acquire Illinois-based non-chocolate confectioner Ferrara Candy from private equity firm L Catterton for an undisclosed price to expand its US business.
The transaction made by an affiliated company of Ferrero is expected to help the confectionary giant establish its presence in attractive confectionary categories like gummy and seasonal candies.
Ferrara is the manufacturer of well-known brands like the gummy candy range Trolli, seasonal candy Brachs and the organic and fruity candy range Black Forest Organics.
Ferrero Group executive chairman Giovanni Ferrero said: “With this acquisition, we are continuing to increase our overall footprint and product offering in the important U.S. market, establishing a presence in new confectionary categories with attractive growth prospects, including gummy and seasonal candies.
“We look forward to continuing to grow the Ferrara business, investing in its brands to support expansion plans, leveraging its U.S. manufacturing plants and distribution centers, and creating opportunities for its talented people.”
Post acquisition, Ferrero is likely to operate Ferrara as a separate business and maintain its headquarters in Oakbrook Terrace, Illinois.
The acquisition includes Ferrara’s four plants in Bellwood and Forest Park, Illinois, and Reynosa and Vernell, Mexico. Ferrara’s two distribution facilities in Bolingbrook, Illinois and Grand Prairie, Texas, along with an engineering and R&D center in Bellwood, Illinois are also part of the deal.
Ferrara CEO Todd Siwak said: “We have long admired Ferrero’s core values of loyalty and trust, respect and responsibility, integrity, and commitment to quality, which align closely with our passion for bringing smiles to generations of candy lovers.
“Joining forces with Ferrero gives us the opportunity to accelerate our growth plans in the U.S. and international markets and share best practices as part of a larger, stronger organization.”
Subject to customary closing conditions and regulatory approvals, the transaction is anticipated to be close in the fourth quarter of this year.
Last week, Ferrero announced a $72m expansion project for its Canadian unit to add a new cocoa bean processing plant and increase the manufacturing capacity for Nutella & Go in Brantford, Ontario.
