Ferrero to acquire US confectioner Fannie May
Italian confectionery group Ferrero has entered a definitive agreement to acquire US-based chocolate confectionery manufacturer Fannie May from 1-800-Flowers.
Financial details of the transaction have not been disclosed by either company.
In addition to the agreement, Ferrero is also planning to sign a strategic commercial partnership agreement for selected Ferrero and Fannie May products in 1-800-Flowers gift baskets, towers and on e-commerce sites.
Ferrero Group chief executive officer Giovanni Ferrero said: “Fannie May represents a strong strategic and cultural fit for Ferrero and we are happy that Fannie May’s talented people, premium brand and quality products will become part of the Ferrero Group."
Upon completion of the transaction, Fannie May will operate as a standalone entity and brand within the Ferrero Group, with support from Ferrero USA.
Ferrero North America president and CEO Paul Chibe said: “Fannie May brings great people and a valuable manufacturing, distribution and retail network to Ferrero’s expanding US presence.
“We plan to build on the Fannie May organisation to support the growth of the Fannie May and Harry London brands. We are confident there are significant opportunities to enhance Fannie May’s growth, leveraging Ferrero’s capabilities to sell new products through a substantially larger base of channels.”
Ferrero intends to maintain Fannie May’s facilities in Ohio and Illinois, as well as work with the existing Fannie May management team on a go-forward basis.
It also noted that Ferrero will maintain its US headquarters, and assembly and packaging facility in New Jersey.
Subject to customary closing conditions and regulatory approvals, the transaction is expected to be closed by the end of May.
Image: Ferrero to acquire Fannie May Confections Brands. Photo: courtesy of pazham via freedigitalphotos.net.