Ferrero nails tooth to Kellogg's
The US agribusiness company Kellogg's has reached an agreement to sell a portfolio of assets to the Italian Ferrero for 1,300 million dollars (1,158 million euros), as announced in a statement.
Specifically, the agreement includes the sale of part of its business of cookies, snacks with fruit flavors, cake doughs and ice cream. The deal has also included the commercial use of the brands Keebler, Mother's, Famous Amos and Murray's, as well as the cookies that Kellogg manufactures for the Girl Scouts of the United States.
In the whole of 2018, the assets sold to Ferrero reached a turnover of 900 million dollars (802.3 million euros) and an operating profit of 75 million dollars (66.8 million euros).
"This divestment is another action we have taken to reform and focus our portfolio, which will reduce complexity, more targeted investment and better growth," said Kellogg President and CEO Steve Cahillane.
With this purchase, the Italian firm manages to enter the North American market. "The agreement allows us to diversify our portfolio and capitalize on growth opportunities in the largest market for biscuits in the world," said Lapo Civiletti, CEO of the Ferrero group.