ROME, Jan. 17 (Xinhua) -- Italy's chocolate giant Ferrero bought the U.S. candy business of Swiss food group Nestle for 2.8 billion U.S. dollars in cash, making the Italian firm the world's third largest in its sector, local media reported Wednesday.
The company announced the deal in a statement on Tuesday, highlighting the operation would strengthen its worldwide position overall.
"Ferrero will acquire more than 20 historic American brands, including iconic chocolate labels such as Butterfinger, Baby Ruth, 100 Grand, Raisinets, Wonka," it said.
With the deal, Ferrero will also gain exclusive rights on the Crunch brand in the United States, as well as on candy brands SweeTarts, Laffy Taffy and Nerds.
Nestle's business in the U.S. market generated a turnover of about 900 million U.S. dollars in 2016, according to Ferrero.
The deal would allow the Italian family-owned company "a broader offering of high-quality products to consumers of chocolate snacks, candies, confectionary and seasonal products", Ferrero Group executive chairman Giovanni Ferrero said in the statement.
Besides, the acquisition would offer "exciting new opportunities of growth in the world's largest confectionary market", the chairman added.
With the acquisition of U.S. Nestle, the producer of famous Nutella and Ferrero Rocher brands will become the third largest chocolate manufacturer in the United States and in the world, behind American Hershey and Mars, Italy's leading business daily Il Sole 24 Ore said Wednesday.
Founded in the northern city of Alba, Piedmont, in 1946, Ferrero opened its first branch in Europe in 1956, with a factory in Germany. It launched its first product on the U.S. market -- the small Tic Tac candies -- in 1969.
It now operates through 22 plants in some 55 countries with 32,990 employees overall, selling its products in more than 170 countries, according to the company presentation.
The Ferrero Group posted a consolidated turnover of 10.3 billion euros (12.5 billion U.S. dollars) in 2016, with an 8.2 percent increase over the previous year.
