Deals
Nutella Maker to Pay $2.8 Billion for Nestle U.S. Candy Unit
- Italy’s Ferrero to buy Baby Ruth, Butterfinger from Nestle
- Nestle focusing on healthier food as chocolate sales weaken
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Nestle SA agreed to sell its U.S. confectionery unit to Ferrero SpA, the Italian maker of Nutella, for $2.8 billion in the first substantial step away from the candy business by the company that invented milk chocolate.
The sale of the unit, which includes the Butterfinger and Baby Ruth brands, is also the first major divestment by the Swiss food giant since Chief Executive Officer Mark Schneider took the helm last year. Nestle plans to focus on healthier and faster-growing categories like coffee, pet food and water as the food industry grapples with a drop in demand for sugary products.