Ferrero Buys US Chocolate Maker Fannie May Confections
Italian chocolate confectionery giant Ferrero has acquired US premium chocolate maker Fannie May Confections Brands, Inc.
The $115 million cash deal, signed with 1-800-Flowers.com, includes subsidiaries Fannie May Confections and Harry London Candies.
In addition, a strategic commercial partnership will be signed that will provide 1-800-Flowers.com with distribution rights for Fannie May, Harry London and certain Ferrero confectionery products in its e-commerce channels as well as in gift baskets and towers sold in the club, food, drug and mass channels.
According to the CEO of 1-800-Flowers.com, Chris McCann, the transaction will further strengthen the company’s balance sheet while reducing the working capital requirements.
For Giovanni Ferrero, CEO of Ferrero Group, Fannie May represents “an extraordinarily good fit” and will help expand Ferrero’s presence in the US.
The transaction is subject to customary closing conditions and regulatory approvals and should be closed by 30 May 2017.
Besides Fannie May’s e-commerce business, the deal also includes 79 retail stores mainly in and around Chicago, a manufacturing plant in North Canton (Ohio) and two temperature-controlled warehouse and distribution facilities in Maple Heights (Ohio) and Chicago (Illinois).
Following the closing of the transaction, Fannie May will continue to operate as an entity and autonomous brand within the Ferrero Group, with the support of Ferrero USA (if necessary).
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine