Kellogg sells Keebler and Famous Amos to get out of the cookie business.
Italian baked goods company and Nutella producer Ferrero Group will buy Kellogg’s Keebler cookies, Famous Amos, Mother’s, Murray’s, Girl Scout cookies and fruit snacks brands for $1.3 billion.
Kellogg said it aims to focus on its businesses that may have more potential for growth. It had been trying to sell off those brands since November, according to CNN, saying that the brands weren’t a good fit with the rest of the company’s offerings, announcing its plans to reorganize its North America team, invest in e-commerce to drive growth, and find new ways to compete in the crowded cookie market.
For Ferrero, the acquisition is a way to expand its North American business. The deal “[allows] us to significantly diversify our portfolio and capitalize on exciting new growth opportunities in the world’s largest cookies market,” said Lapo Civiletti, CEO of the Ferrero Group.
Wells Fargo analyst John Baumgartner said that the sale could provide a “halo effect” for Kellogg’s, which is holding on to Keebler’s cracker business, if Ferrero invests in marketing Keebler.
Shares in Kellogg fell 2.4% on Monday after the announcement.