Ferrero Buys U.S. Chocolate Maker Fannie May for $115M

The maker of Tic-Tacs, Nutella, and Ferrero Rocher, Ferrero International S.A., signed an agreement with 1-800-Flowers.com Inc. to acquire the assets of Fannie May Confections Brands Inc. in a $115 million cash transaction, 1-800-Flowers.com, a gourmet food and floral gift provider, announced by press release Wednesday.

Fannie May subsidiaries Fannie May Confections Inc. and Harry London Candies Inc. are included in the sale. The global chocolate and confectionary firm also will enter a strategic commercial partnership with 1-800-Flowers, providing the latter company with distribution rights for Fannie May, Harry London, and some Ferrero confectionery products through it’s e-commerce channels and in gift baskets and towers sold via the firm’s website, food, drug, and mass channels in America.

“We are excited to be working with Ferrero International, one of the world’s largest and most respected confectionery companies. This transaction will further strengthen our balance sheet while concurrently reducing the working capital requirements in our business model,” said Chris McCann, chief executive officer of 1-800-Flowers, in a statement. “Importantly, the strategic commercial agreement with Ferrero will enable us to continue offering the iconic Fannie May and Harry London chocolate brands across our ecommerce and wholesale channels and expand our product offerings to include some of Ferrero’s world-renowned chocolate confectionery brands, including Nutella, Ferrero Rocher, and Raffaello – further enhancing our ability to help our customers deliver smiles.”

The transaction, which also includes 79 retail locations, is expected to close by May 30, 2017, the companies said, after customary closing conditions and regulatory approvals are completed.

“Since our entry into the U.S. in 1969, we have actively expanded our premium product offering organically, and are thrilled to further accelerate growth through the addition of Fannie May. 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,” said chief executive officer of the Ferrero Group, Giovanni Ferrero, in a statement.

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