The Ferrero Group has agreed to buy U.S. seasonal candy maker Ferrara Candy Co. from L Catterton. The deal comes just before Halloween.
Ferrara, Oakbrook Terrace, Illinois was formed in 2012 through the merger of Ferrara Pan Candy Co. and Farley's & Sathers Candy Co. The third largest U.S. non-chocolate confectionery company produces Brach's Halloween candy.
Ferrero is best known for owning the Tic Tac and Nutella brands. Earlier in 2017, the Alba-Italy-based company reached a deal to buy chocolate manufacturer Fannie May Confections Brands from 1-800 Flowers.com Inc. (Nasdaq: FLWS).
"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 confectionary categories with attractive growth prospects, including gummy and seasonal candies," says Ferrero executive chairman Giovanni Ferrero. Financial terms of the deal were not disclosed.
Established in 2016,L Catterton came to form through the combination of LVMH Moet Hennessy Louis Vuitton SE’s private equity group L Capital and its real estate investment unit with consumer-focused private equity firm Catterton. The consumer-focused private equity firm has managed more than $14 billion in equity capital across six fund strategies. The Greenwich, Connecticut-headquartered firm recently agreed to purchase Mexican restaurant Uncle Julio’s.
In other food and beverage deals, Conagra Brands Inc. (NYSE: CAG) has agreed to acquire Angie's Artisan Treats; Nestlé is acquiring a majority stake in Blue Bottle Coffee; and Post Holdings Inc. (NYSE: POST) has agreed to buy packaged foods maker Bob Evans Farms Inc. (Nasdaq: BOBE).