Kellogg Co. is getting out of the cookie business, as it continues to refocus its brand portfolio on other foods.
The company has agreed to sell its well-known Keebler and Famous Amos cookie brands along with a selection of other baked goods and snack businesses to Ferrero Group for $1.3 billion in cash. Ferrero Group, the Italian maker of Nutella and Tic Tacs, is the second-biggest chocolate producer and confectionery company in the world.
"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," Kellogg's Chairman and Chief Executive Officer Steve Cahillane said in a statement.
- Keebler, Mother's, Famous Amos, Murray's and Murray's Sugar Free are among the brands being sold, as are cookies manufactured for Girl Scouts of the U.S.A. In 2018, these businesses recorded net sales of nearly $900 million and operating profit of approximately $75 million, including estimated indirect corporate expenses.
- Kellogg will retain the rest of its North America snacking businesses, including its crackers, salty snacks, wholesome snacks and toaster pastries brands.
- The sale includes production facilities in Augusta, Georgia; Florence, Kentucky; Louisville, Kentucky; Allyn, Washington; and Chicago, Illinois.
- The transaction is expected to close by the end of July.