Kellogg has agreed to sell its Keebler and Famous Amos businesses to Ferrero for $1.3 billion
Kellogg agreed on Monday to sell a collection of businesses to Italian chocolate maker Ferrero for $1.3 billion, according to a statement from the company.
The businesses include Keebler, Famous Amos, and several smaller ones, which include fruit snacks and cookies manufactured for Girl Scouts of the USA. The businesses had total net sales of nearly $900 million and operating profit of approximately $75 million for 2018, implying a multiple of over 17 times pre-tax earnings.
"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," Steve Cahillane, Kellogg's chairman and chief executive officer, said in the statement.
Kellogg agreed on Monday to sell a collection of businesses to Italian chocolate maker Ferrero for $1.3 billion, according to a statement from the company.
The businesses include Keebler, Famous Amos, and several smaller ones, which include fruit snacks and cookies manufactured for Girl Scouts of the USA. The businesses had total net sales of nearly $900 million and operating profit of approximately $75 million for 2018, implying a multiple of over 17 times pre-tax earnings.
"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," Steve Cahillane, Kellogg's chairman and chief executive officer, said in the statement.