The Kellogg Company has announced that it has reached a definitive agreement to sell selected cookies, fruit and fruit-flavoured snacks, pie crusts, and ice cream cones businesses to the Ferrero Group and its related companies.
The transaction, valued at €1.16 billion, is subject to customary closing conditions, including any applicable regulatory approvals.
It is expected to close by the end of July.
Reshaping The Portfolio
“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,” said Steve Cahillane, Kellogg's chairman and chief executive officer.
“Divesting these great brands wasn't an easy decision, but we are pleased that they are transitioning to an outstanding company with a portfolio in which they will receive the focus and resources to grow.”
The divestiture represents a portion of Kellogg's North America snacking business, specifically, it includes its cookies business.
These businesses accounted for nearly $900 million in sales and operating profit of $75 million.
Kellogg will retain the rest of its North America snacking businesses, including its crackers, salty snacks, wholesome snacks, and toaster pastries brands.
“On behalf of our entire Company, I want to thank the many employees who support these businesses and have contributed to the strength of these brands,” Cahillane added.
“We appreciate their passion, commitment and everything they have done for Kellogg. These talented individuals are going to a first-class organisation in Ferrero, where they undoubtedly will thrive.”
© 2019 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click sign-up to subscribe to Checkout.