Battle Creek, MI — The Ferrero Group has moved to purchase the Keebler brand along with other cookie, fruit and fruit-flavored snack, pie crust and ice cream cone businesses from The Kellogg Co. in a deal valued at $1.3 billion, according to the U.S.-based CPG company.
Anticipated to close in July, the transaction includes cookie brands Mother’s, Famous Amos, Murray’s and Murray’s Sugar Free as well as cookies manufactured for Girl Scouts of the U.S.A., Kellogg reports. The deal also includes production facilities in Augusta, GA; Florence, KY; Louisville, KY; Allyn, WA; and Chicago. During 2018, these brands generated net sales of nearly $900 million and operating profit of approximately $75 million.
Kellogg will retain its North America snacking businesses, which includes crackers, salty snacks, wholesome snacks and toaster pastry brands.
“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 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.”