Italian confectionery group Ferrero International, known for its Nutella spread, Kinder bars, and Ferrero Rocher pralines, has reached a final agreement to buy US company Fannie May Confections Brands from 1-800 Flowers for 115 million dollars in cash, 1-800-Flowers said in a statement. The deal, which includes the seller’s subsidiaries Fannie May Confections and Harry London Candies, allows family-owned Ferrero to expand its footprint in the US, a market it entered in 1969 and which has become its fifth-largest globally.
STRATEGIC PARTNERSHIP – We have long admired Fannie May’s premium brand, products and people, and believe Fannie May is an extraordinarily good fit with Ferrero, said Giovanni Ferrero, Chief Executive Officer. In addition to the sale agreement, 1-800 Flowers and the Italian group will enter into a strategic commercial partnership that will provide 1-800-Flowers with distribution rights for Fannie May, Harry London and certain Italian confectionery products in its e-commerce channels as well as in gift baskets and towers sold into the club, food, drug and mass channels in the USA.
AMERICAN MARKET – Since our entry into the U.S. in 1969, we have actively expanded our premium product offering organically, and we are thrilled to further accelerate growth through the addition of Fannie May, Mr. Ferrero said. We look forward to adding Fannie May’s outstanding team and valuable manufacturing, distribution and retail platform to Ferrero’s expanding U.S. presence, and to supporting and growing this iconic American brand for years to come, the CEO added. The transaction is expected to close by May 30.