Tic-Tac Maker Ferrero Acquiring Trolli Maker Ferrera Candy
OAKBROOK TERRACE, Ill. — Two candy companies are joining forces.
Under the terms of a definitive agreement, an affiliated company of the Ferrero Group will acquire Ferrara Candy Co. from L Catterton, a global consumer-focused private equity firm in the world. Terms of the transaction were not disclosed.
Ferrara is the third-largest U.S. non-chocolate confectionary company. It is best known as the maker brands such as Trolli, a leader in gummy candies; Brachs, a leading seasonal candy, particularly at Halloween; and Black Forest Organics, a leader in organic and fruity candies.
Ferrero is the third-largest company in the global chocolate confectionary market and best known in the United States for Tic Tac breath 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 U.S. market, with both products scheduled to be available in stores in January.
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.
"We are pleased to welcome the Ferrara business, brands and people to Ferrero. With this acquisition, we are continuing to increase our overall footprint and product offering in the important U.S. market, establishing a presence in new confectionary categories with attractive growth prospects, including gummy and seasonal candies," said Giovanni Ferrero, executive chairman of the Ferrero Group.
"We look forward to continuing to grow the Ferrara business, investing in its brands to support expansion plans, leveraging its U.S. manufacturing plants and distribution centers, and creating opportunities for its talented people," he said.
Ferrero expects to operate Ferrara as a separate unit and to maintain Ferrara's headquarters in Oakbrook Terrace. Ferrero noted that Ferrara has consolidated its manufacturing and distribution footprint to four plants in Bellwood and Forest Park, Ill., and Reynosa and Vernell, Mexico, two distribution centers in Bolingbrook, Ill., and Grand Prairie, Texas, and an engineering and research and development center in Bellwood, Ill.
Ferrero intends to maintain and leverage this existing footprint with no further planned consolidation.
"We are pleased to announce this agreement with Ferrero, which will enable the continued growth and momentum behind our iconic and well-loved brands," said Todd Siwak, CEO of Ferrara. "We have long admired Ferrero’s core values of loyalty and trust, respect and responsibility, integrity, and commitment to quality, which align closely with our passion for bringing smiles to generations of candy lovers.
"Joining forces with Ferrero gives us the opportunity to accelerate our growth plans in the U.S. and international markets and share best practices as part of a larger, stronger organization," he added.
The transaction is subject to customary closing conditions and regulatory approvals, and is expected to close in the fourth quarter of 2017.
Founded as a family business in Alba, Italy in 1946, Ferrero is the third-largest company in the global chocolate confectionary market, with global sales of more than $12 billion, distribution across 170-plus countries. Ferrero entered the U.S. in 1969 with Tic Tac breath mints.