Cornflakes manufacturer Kellogg Company has reached an agreement on the sale of its biscuit department to Nutella producer Ferrero, as can be read on the website of the American company.
Ferrero will be paying 1.3 billion dollars (1.16 billion euros) for the acquisition. The most important brand in the deal are the Keebler biscuits. Also involved are snacks, pie crusts and ice cream cones.
CEO Steve Cahillane has submitted Kellogg to a reorganisation of its brand portfolio. The company wants to shift its focus to products with more growth potential. "This divestiture is yet another action we have taken to reshape and focus our portfolio, which will lead to reduced complexity, more targeted investment, and better growth," says Cahillane.
This isn't Ferrero's first takeover in the United States. Last year, the company bought Nestlé's American candy division for 2.8 billion dollars (2.5 billion euros). Ferrero especially targets neglected brands within major multinationals. The brands acquired by Ferrero generated a turnover of about 900 million dollars last year (800 million euros) and an operational profit of 75 million dollars (66 million euros).