Nutella and Tic Tac maker Ferrero International has announced to acquire some of the brands of UK based food manufacturer United Biscuits for an undisclosed sum.
The Italian chocolatier is planning to buy Belgian cookies Delacre and Delichoc besides a couple of biscuit factories in Belgium and France from the United Biscuits group, now controlled by Pladis, reported The Wall Street Journal.
Ferrero’s acquisition plans are part of its strategy to venture out from its traditional chocolate business.
The confectionary group is looking to reduce its dependence on its core chocolate business by entering the biscuit sector, reported Reuters, citing a note by Euromonitor International senior food analyst Pinar Hosafci.
The deal could also enable Ferrero to gain an opportunity to expand its footprint in North America.
The deal would need an antitrust approval to move ahead, following which it is likely to be closed next month.
United Biscuits was acquired in 2014 by Turkish company Yildiz Holdings, the parent company of Pladis.
Last year, Ferrero forayed into the cookie business by launching its first cookie based product. It is also said to be working on a new biscuit product filled with Nutella for the Italian market.
If the acquisition of select brands in the United Biscuits umbrella goes through, then it would be Ferrero’s second acquisition within two years.
In June 2015, Ferrero acquired Thorntons, a UK based chocolatier, which had been in business for nearly hundred years, for £112m.
