Owner of Fannie May buys Oakbrook Terrace candy company
An Italian company that owns Fannie May is buying Ferrara Candy Company, a suburban firm that makes Brachs candy corn and other popular brands.
The Ferrero Group, a global confectionary group, said Thursday that it will acquire Oakbrook Terrace-based Ferrara from L Catterton, a private equity firm.
Terms of the transaction were not disclosed.
Under the agreement, Ferrara said it will operate as a separate unit, maintaining its headquarters in Oakbrook Terrace. Ferrero has no plans to further consolidate Ferrara's manufacturing and distribution footprint, which includes four plants in Bellwood and Forest Park, and Reynosa and Vernell, Mexico, two distribution centers in Bolingbrook and Grand Prairie, Texas, and an engineering and a R&D center in Bellwood.
Ferrara is best known as the maker of iconic brands such as Trolli gummy candies; Brachs seasonal candy, particularly at Halloween; and Black Forest Organics and fruity candies.
Ferrero is the third-largest company in the global chocolate confectionary market and best known in the U.S. for Tic Tac breath mints, Ferrero Rocher pralines, Nutella hazelnut spreads and the Fannie May and Harry London chocolate brands. Ferrero recently introduced Tic Tac gum and Kinder Joy to the U.S. market, with both products scheduled to be available in stores in January 2018. The company has also opened the world's first Nutella Café in Chicago, offering a range of Nutella-based products, along with beverages, sandwiches and soups.
Giovanni Ferrero, executive chairman of the Ferrero Group said, "We are pleased to welcome the Ferrara business, brands and people to Ferrero. With this acquisition, we are continuing to increase our overall footprint and product offering in the important U.S. market, establishing a presence in new confectionary categories with attractive growth prospects, including gummy and seasonal candies."
The transaction is expected to be complete by the end of the year.