Ferrero will take over more than 20 iconic Nestle brands including the likes of Butterfinger, BabyRuth, 100Grand, Raisinets and Wonka.
It will also have exclusive rights to candy brands SweeTarts, LaffyTaffy and Nerds.
“We will have substantially greater scale, a broader offering of high-quality products to customers across the chocolate snack, sugar confectionary and seasonal categories, and exciting new growth opportunities in the world's largest confectionery market,” Giovanni Ferrero, executive chairman of the Ferrero Group, said in a statement.
In 2016, Nestle’s US operations generated a turnover of around US$900 million.
Ferrero, which makes Nutella, Ferrero Rocher, Tic Tac and Kinder, beat US chocolate group Hershey in the contest to buy the business.
According to a Reuters report, Nestle agreed to sell its US confectionery business in “a small step on its path towards healthier products”.
The business had reportedly been failing to keep up with its rivals for years, with consumers tending to opt for healthier snacks like fruit and nut bars and premium brands like Lindt.
Following this purchase, Ferrero will become the third-largest chocolate company in the US and the world.
With ANSA
