Global chocolate giant, the Ferrero group, will acquire Ferrara Candy Group, the third largest non-chocolate U.S. confectionery company, from the private equity company L. Catterton.
Ferrara Candy Group specializes in gummies, seasonal candies, fruit snacks and other candies, making the union of these two companies a confectionery heaven. Ferrara is best known for their iconic Trolli brand, which is a leader among gummy candies, Brachs, a seasonal candy and Halloween favorite and Black Forest Organics, a leader among organic candies. Ferrara was created by the merger of Ferrara Pan Candy Company, Inc. and Farley’s & Sathers Candy Company, Inc. in 2012.
Ferraro is the third largest company in the global chocolate market with global sales of over $12 billion and distribution across over 170 countries. They are best known for their Ferrero Rocher pralines, U.S. Tic-Tac mints, Nutella spread and the Fannie May and Harry London chocolate brands.
“With this acquisition, we are continuing to increase our overall footprint and product offering in the important U.S. market, establishing a presence in new confectionery categories with attractive growth prospects, including gummy and seasonal candies,” said Giovanni Ferrero, Executive Chairman of the Ferrero Group.
“We look forward to continuing to grow the Ferrara business, investing in its brands to support expansion plans, leveraging its U.S. manufacturing plants and distribution centers, and creating opportunities for its talented people,” he continued.
The sale is expected to close in the fourth quarter of 2017
Ferrero plans to run Ferrara as a separate unit and maintain Ferrara’s headquarters in Oakbrook Terrace, Illinois. Along with the acquisition, comes two distribution centers in Bolingbrook, Illinois and Grand Prairie, Texas, four manufacturing and distribution plants in Bellwood and Forest Park, Illinois, and Reynosa and Vernell, Mexico and an engineering and R&D center in Bellwood, Illinois.
The sale is expected to close by the year’s end, with subject to regulatory approvals.
“Joining forces with Ferrero gives us the opportunity to accelerate our growth plans in the U.S. and international markets and share best practices as part of a larger, stronger organization,” said Todd Siwak, Chief Executive Officer of Ferrara.