NEW YORK (AP/WMAL) – Swiss food and drink giant Nestle is selling its U.S. candy business to Italy’s Ferrero for about $2.8 billion in cash. Ferrero will take over iconic chocolate brands Butterfinger and Crunch bars, as well as the sugary Nerds, SweeTarts and FunDip.
After a review of its portfolio last summer, Nestle hinted that it might sell its U.S. business, with its eye on higher-growth areas like pet care, coffee and infant nutrition.
Nestle spokesperson Josh Morton told WMAL that the sale won’t impact the Nestle’s headquarter move to Rosslyn, Virginia. “We’re aiming to be in place in the new building in Rosslyn by mid-year this year,” he said.
In September, Nestle announced that it bought a majority stake in Blue Bottle Coffee, a high-end coffee company. Other Nestle brands include Purina, Gerber and Stouffer’s.
Nestle, based in Switzerland, says its U.S. candy business accounts for about 3 percent of its U.S. division’s sales.
The deal is expected to close at the end of the first quarter.
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