By: Patrick Ketza
Swiss based Nestle is selling off their US candy business to Italy's Ferrero, the makers of Ferrero Rocher and Nutella, for $2.8 billion in cash, Ferrero announced Tuesday.
The deal gives Ferrero control over major candy brands like Butterfinger, BabyRuth, 100Grand, Raisinets and Wonka. They will also acquire Nestle's U.S. manufacturing facilities in Bloomington, Franklin Park and Itasca, Illinois.
While the deal itself is huge, the US candy sales only represented about 3% of there overall sales. Nestle is the world largest producer of coffee, and late last year they acquired a majority stake in gourmet coffee company Blue Bottle and purchased premium coffee brand Chameleon Coffee. Nestle already owns coffee brands Nescafe and Nespresso.
Nestle also makes Purina pet food, bottled water, Stouffer's and Gerber baby foods.