The Ferrero Group announced a definitive agreement pursuant to which it will acquire the cookie, fruit and fruit-flavoured snack, ice cream cone and pie crust businesses from Kellogg Company for $1.3 billion. These businesses generated sales of approximately $900 million in 2018.

Ferrero will acquire the iconic cookie brand Keebler, Famous Amos cookies, Mother’s, Murray sugar-free cookies, and Little Brownie Bakers. Ferrero will also acquire the Kellogg fruit snacks business, including Stretch Island, Fruity Snacks, Keebler’s ice cream cones and pie crust products.

Ferrero will also acquire from Kellogg six owned U.S. food manufacturing facilities located across the country in Allyn, Washington, Augusta, Georgia, Florence and Louisville Kentucky, and two plants in Chicago, Illinois; as well as a leased manufacturing facility in Baltimore, Maryland.

Lapo Civiletti, CEO of the Ferrero Group, said, “We are acquiring a portfolio of well-established brands that consumers love, with very strong market positions across their respective categories, allowing us to significantly diversify our portfolio and capitalize on exciting new growth opportunities in the world’s largest cookies market.”

The transaction, subject to customary closing conditions and regulatory approvals, is expected to close in the second half of the year.