Kellogg to sell Keebler, related snack brands to Ferrero
Kellogg announced that it has reached an agreement to sell selected cookies, fruit, fruit-flavored snacks, pie crusts and its ice cream cones business to the Ferrero Group and its related companies.
The transaction is valued at $1.3 billion and includes such brands as Keebler, Mother’s, Famous Amos, Murray’s, Murray’s Sugar Free and cookies manufactured for the Girl Scouts of the U.S.A.
"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," Steve Cahillane, Kellogg's chairman and chief executive officer said. "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."
Included in the transaction are the production facilities in Augusta, Ga., Florence, Ky., Louisville, Ky., Allyn, Wa., and Chicago.
"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," Cahillane added. "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."
In 2018, the Keebler business and others recorded net sales of nearly $900 million and operating profit of approximately $75 million, including estimated indirect corporate expense
Kellogg will retain the rest of its North America snacking business, including its crackers, salty snacks, wholesome snacks and toaster pastry brands among others.
The transaction is valued at $1.3 billion and includes such brands as Keebler, Mother’s, Famous Amos, Murray’s, Murray’s Sugar Free and cookies manufactured for the Girl Scouts of the U.S.A.
"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," Steve Cahillane, Kellogg's chairman and chief executive officer said. "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."
Included in the transaction are the production facilities in Augusta, Ga., Florence, Ky., Louisville, Ky., Allyn, Wa., and Chicago.
"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," Cahillane added. "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."
In 2018, the Keebler business and others recorded net sales of nearly $900 million and operating profit of approximately $75 million, including estimated indirect corporate expense
Kellogg will retain the rest of its North America snacking business, including its crackers, salty snacks, wholesome snacks and toaster pastry brands among others.