Sweat Deal – Nestle sells its U.S. confectionery business to Ferrero for $2.8 billion

Nestle is selling its U.S. confectionery business including Nestle Crunch, Butterfinger, Baby Ruth, Raisinets, Nips, Skinny Cow and Laffy Taffy.to Italian chocolate and candy maker Ferrero for an estimated $2.8 billion, the company said Tuesday.

Nestle is the world's largest food company and its 2016 U.S. confectionery sales were about $900 million representing about 3% of U.S. Nestle Group's sales.

The sale of Nestle's U.S. candy business doesn't include the Toll House baking line or Kit Kat. While Kit Kat is Nestle’s global brand, Hershey owns the rights in the U.S.

Nestle CEO Mark Schneider  commented that the sale allows Nestle to invest and innovate across a range of categories where Nestle sees strong future growth and leadership positions, such as pet care, bottled water, coffee, frozen meals and infant nutrition.

This acquisition is said to make Ferrero the third-largest chocolate confectionery in the world. The acquisition will help Ferrero achieve its strategic goal of boosting its presence in the US.