Chocolate confectionery company Ferrero has announced plans to acquire US-based Ferrara Candy Company, which produces brands such as Trolli gummy sweets and Lemonheads.
Ferrero says that this deal will help the company expand its portfolio in the US, where it is best known for its Tic Tac, Ferrero Rocher, and Nutella product ranges.
"With this acquisition, we are continuing to increase our overall footprint and product offering in the important US market, establishing a presence in new confectionary categories with attractive growth prospects, including gummy and seasonal candies," said Giovanni Ferrero, executive chairman of the Fererro Group.
"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 says that it plans to operate Ferrara as a separate unit, and maintain the US candy company's headquarters in Illinois.
The group notes that Ferrara has already consolidated its manufacturing and distribution footprints to four plants, two distribution centres and an engineering and R&D centre, and intends to maintain and leverage this existing footprint.
Todd Siwak, CEO of Ferrara, added that the deal will "enable the continued growth and momentum" behind the company's brands, and provide the opportunity to expand to international markets.
The transaction is expected to close in the fourth quarter of 2017.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.