Thursday, July 27, 2017
Italian food giant Ferrero is considering what would be the largest takeover in its history: the acquisition of Nestlé’s U.S.-based sweet snack business.
The deal would be worth $3 billion and represent “an unprecedented attack on the lucrative U.S. market,” according to a report on the Italy Europe 24 website.
According to reports by the news agency Dealreporter, Ferrero has hired an investment bank to study the dossier, the news report says. Ferrero has already expanded in the U.S. market with the purchase of Fannie May Confections Brands, a producer of quality chocolate, for $115 million in cash. For Ferrero, it could be a big opportunity for growth in the U.S.
Nestlé, meanwhile, announced on June 15 that it was exploring strategic options for its U.S. confectionery division, including a potential sale. The division includes products such as Butterfinger and BabyRuth and would be valued at about $3 billion. It generated an estimated $900 million turnover in 2016.
If Ferrero decides to go ahead with a bid, it would be the company’s second acquisition in 2017, and the second in the U.S. The company has also expanded in Asia, and, two years ago, acquired Britain’s Thorntons.
Image: Ferrero.com
