Kellogg To Sell Keebler Cookie Brand To Italy's Ferrero
Cereal maker Kellogg Co is to sell its Keebler cookies unit and some other assets to Italy's Ferrero Group for $1.3 billion (€1.16 billion).
Kellogg is also selling its fruit-flavored snacks, pie crusts and ice-cream cones businesses to Ferrero as part of the deal.
The businesses being sold had net sales of nearly $900 million in 2018, Kellogg said, adding the deal, which is expected to close by the end of July, will reduce 2019 adjusted earnings per share by less than 5%, excluding the impact of currency fluctuations.
Evercore was Kellogg's lead adviser for the deal, while Goldman Sachs was co-adviser.
Subject to closing conditions and regulatory approvals, the transaction is expected to close by the end of July.
"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," commented Steve Cahillane, Kellogg's chairman and chief executive officer.
"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."