Global confectionery group Ferrero has signed a definitive agreement with Nestlé to acquire its US confectionary business for $2.8bn in cash.

Under the deal, Ferrero will be acquiring chocolate brands such as Butterfinger, BabyRuth, 100Grand, Raisinets, Wonka, and certain sugar brands that include SweeTarts, LaffyTaffy, and Nerds.

Ferrero will also have an exclusive right over the Crunch brand for confectionary and certain categories in the US.

Completion of the deal is subject to customary closing conditions and is expected to close during the first quarter of this year.

“Ferrero will be acquiring Nestlé’s US manufacturing facilities located in Bloomington, Franklin Park, and Itasca, Illinois.”

Upon completion of the transaction, Ferrero will be acquiring Nestlé’s US manufacturing facilities located in Bloomington, Franklin Park, and Itasca, Illinois.

Ferrero noted that it will retain confectionary-related employees, and continue to operate from offices located in Glendale, California, as well as from its other current locations in Illinois and New Jersey.

Ferrero Group executive chairman Giovanni Ferrero said: “We are very excited about the acquisition of Nestlé’s US confectionery business, which has an outstanding portfolio of iconic brands with rich histories and tremendous awareness.

“In combination with Ferrero’s existing US presence, including the recently acquired Fannie May Confections Brands and the Ferrara Candy Company, we will have substantially greater scale, a broader offering of high-quality products to customers across the chocolate snack, sugar confectionery and seasonal categories, and exciting new growth opportunities in the world’s largest confectionery market.”