Kellogg’s will retain snack brands like Pringles, Cheez-It and Pop-Tarts.
Kellogg Company announced it will sell select brands, including Keebler and Famous Amos, to the Ferrero Group and its related companies.
The transaction is expected to close by the end of July and is valued at $1.3 billion.
“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 CEO. “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 sale includes its cookies business — brands like Keebler, Mother’s, Famous Amos, Murray’s and Murray’s Sugar Free, as well as cookies manufactured for Girl Scouts of the U.S.A. It also includes its fruit and fruit-flavored snacks, pie crusts and ice cream cones businesses.
The transaction also includes production facilities in Augusta, Georgia; Florence, Kentucky; Louisville, Kentucky; Allyn, Washington; and Chicago.
Kellogg will retain the rest of its North America snacking businesses, including brands like Pringles, Cheez-It, Pop-Tarts, Eggo, Kashi and RXBAR.
“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,” said Cahillane. “We appreciate their passion, commitment and everything they have done for Kellogg. These talented individuals are going to a first-class organization in Ferrero, where they undoubtedly will thrive.”
Founded in Italy in 1946, Ferrero entered the U.S. in 1969 with the Tic Tac brand. Its portfolio includes brands like Ferrero Rocher, Nutella, Kinder Joy and Fannie May chocolates.
“We are acquiring a portfolio of well-established brands that consumers love, with very strong market positions across their respective categories, allowing us to significantly diversify our portfolio and capitalize on exciting new growth opportunities in the world’s largest cookies market,” said Ferrero Group CEO Lapo Civiletti.
The company also acquired Nestlé in 2018 for $2.8 billion, which includes candy brands like SweeTarts, Trolli, Brach’s, Butterfinger, Laffy Taffy and Red Hots.