Crunch, Butterfingers and Nerds and will solidify Ferrero’s presence in the U.S. market.

NORTH AMERICA–The Ferrero Group has entered into an agreement to purchase Nestlé’s U.S. confectionery business for $2.8 billion in cash.

Through the transaction, Ferrero will acquire more than 20 iconic brands including Butterfinger, Baby Ruth, 100Grand, Raisinets, Wonka, SweeTarts, LaffyTaffy and Nerds, among others.

Furthermore, the acquisition will see Ferrero become the third largest chocolate confectionery company in the U.S., where it is best known for the Nutella, Tic Tac and Ferrero Rocher brands.

“With Ferrero, we have found an exceptional home for our U.S. confectionery business where it will thrive,” says Mark Schneider, chief executive officer, Nestlé. “At the same time, this move allows Nestlé to invest and innovate across a range of categories where we strong future growth and hold leadership positions, such as pet care, bottled water, coffee, frozen meals and infant nutrition.”

The transaction is subject to customary closing conditions and regulatory approvals, and is expected to close at the end of Q1 2018.

"We are very excited about the acquisition of Nestlé's U.S. confectionary business, which has an outstanding portfolio of iconic brands with rich histories and tremendous awareness,” says Giovanni Ferrero, executive chairman, The Ferrero Group. “In combination with Ferrero's existing U.S. presence, including the recently acquired Fannie May Confections Brands and the Ferrara Candy Company, we will have substantially greater scale, a broader offering of high-quality products to customers across the chocolate snack, sugar confectionery and seasonal categories, and exciting new growth opportunities in the world's largest confectionery market. We look forward to welcoming the talented team from Nestlé to Ferrero and to continuing to invest in and grow all of our products and brands in this key strategic and attractive market."