Kellogg, the leading US cereal and snacks firm, has announced it has reached an agreement to sell selected biscuit, fruit and fruit-flavored snack, pie crust, and ice cream cone businesses to confectionery firm Ferrero in an all-cash transaction valued at $1.3 billion.
The transaction includes Kellogg’s biscuit business, including brands like Keebler, Mother’s, Famous Amos, Murray’s, and Murray’s Sugar Free, as well as biscuits manufactured for Girl Scouts of the USA. At the operational level, it includes production facilities in Augusta (GA), Florence (KY), Louisville (KY), Allyn (WA), and Chicago (IL).
Commenting on the deal, Steve Cahillane, Kellogg chairman and chief executive officer, said: “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. 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”.
Subject to customary closing conditions, including any applicable regulatory approvals, the transaction is expected to close by the end of July.