FDBusiness.com

Ferrero Group is acquiring Ferrara Candy Company, the third largest non-chocolate confectionery company in the US, from L Catterton, the biggest and most globally consumer-focused private equity firm in the world. The terms of the transaction were not disclosed. Ferrara is best known as the maker of iconic brands such as Trolli, a leader in gummy candies; Brachs, a leading seasonal candy; and Black Forest Organics, a leader in organic and fruity candies.

Ferrero is the third largest company in the global chocolate confectionary market and is best known in the US for Tic Tac mints, Ferrero Rocher pralines, Nutella hazelnut spreads, and the Fannie May and Harry London chocolate brands. Ferrero recently introduced Tic Tac gum and Kinder Joy to the US market, with both products scheduled to be available in stores in January 2018. The company has also opened the world’s first Nutella Café in Chicago, offering a range of Nutella-based products, along with beverages, sandwiches and soups.

Giovanni Ferrero (pictured), executive chairman of the Ferrero Group, says: “With this acquisition, we are continuing to increase our overall footprint and product offering in the important US market, establishing a presence in new confectionery categories with attractive growth prospects, including gummy and seasonal candies. We look forward to continuing to grow the Ferrara business, investing in its brands to support expansion plans, leveraging its US manufacturing plants and distribution centres, and creating opportunities for its talented people.”

Ferrero expects to operate Ferrara as a separate unit and to maintain Ferrara’s headquarters in Illinois. The transaction is subject to customary closing conditions and regulatory approvals, and is expected to close in the fourth quarter of 2017.