Kellogg Co. announced in November that it was trying to sell Keebler and other selected cookie, fruit snacks, pie crusts and ice cream cones businesses.
On Monday the company announced that it reached an agreement to sell those businesses to the Ferrero Group, a company known for confections such as Ferrero Rocher, Nutella, Kinder and Tic Tac.
The businesses are being sold for $1.3 billion, and the transaction is expected to close by the end of July.
“This divestiture is yet another action we have taken to reshape and focus our portfolio, which will lead to reduced complexity, more targeted investment, and better growth,” Steve Cahillane, Kellogg’s chairman and CEO, said in a press release. “Divesting these great brands wasn’t an easy decision, but we are pleased that they are transitioning to an outstanding company with a portfolio in which they will receive the focus and resources to grow.”
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The brands Kellogg is selling include Keebler, Mother’s, Famous Amos, Murray’s as well as cookies manufactured for Girl Scouts of the U.S.A. The sale includes production facilities in Augusta, Georgia; Florence, Kentucky; Louisville, Kentucky; Allyn, Washington; and Chicago, Illinois.
Those businesses had net sales of nearly $900 million and an operating profit of around $75 million in 2018, according to the press release from Kellogg’s.
Approximately 30 employees in Kellogg corporate offices in Michigan that will be impacted by this sale and another 30 employees located throughout the U.S. Ferrero has agreed to make offers of employment to all affected employees, according to an email from Kellogg’s media relations team.
In February, Kellogg’s cut 67 jobs from its Global Growth Team in Battle Creek, as part of a restructuring of Kellogg North America.