Kellogg announced plans on Monday to sell its Keebler, Famous Amos and fruit snack businesses to Nutella owner Ferrero for $ 1.3 billion.
"We buy 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 leverage exciting new growth opportunities at the world's largest cookies market," Ferrero says. CEO Lapo Civiletti in a statement
With the agreement, Ferrero also acquires six US food production facilities throughout the United States and a leased production facility in Baltimore.
Meanwhile, Kellogg reports its portfolio to focus on brands it can revive like Pringles , Cheez-Its and Rice Krispies Treats. Kellogg shares, which have a market value of USD 19.72 billion, are down nearly 11 percent over the past year. taken to transform and focus our portfolio, wh ich will lead to reduced complexity, more targeted investment o G growth, "said Kellogg CEO Steve Cahillane in a statement.
"Selling these big brands was not an easy decision, but we are pleased that they are moving to an outstanding company with a portfolio where they will have the focus and resources to grow." the owner bought Keebler in 2001 for 4.4 billion. At that time, part of the drawing was designed by the cookie label's "direct-delivery delivery" platform, whereby employees place the company's own products in the stores rather than ships from stock. So-called DSD gives a food company greater control over ensuring proper display in grocery stores and grocery stores. But as in the store sales of products that cookies have fallen, it is less economical. Kellogg has since dropped DSD distribution .
Evercore served as a leading financial advisor to Kellogg, while Goldman Sachs served as a co-advisor. Wachtell, Lipton, Rosen & Katz gave legal advice to Kellogg.
JP Morgan Securities served as financial adviser to Ferrero, while Davis Polk & Wardwell provided legal counsel.
Watch: Kellogg explores the sale of cookie and fruit snack industry