Ferrero to Pay CHF2.8 Billion for Nestle's U.S. Business

By Eric Sylvers, Saabira Chaudhuri and Annie GasparroFeaturesDow Jones Newswires

Italian confectionery maker Ferrero International SA will pay 2.8 billion Swiss Francs ($2.9 billion) in cash to buy Nestle SA's (NESN.EB) U.S. chocolate business.

Ferrero beat out Hershey Co. in Switzerland-based Nestle's months-long sales process that also drew interest from several private equity firms.

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The Nestle business had about $900 million in sales in 2016, and its acquisition will make family-owned Ferrero the third-biggest chocolate seller in the U.S. It is Ferrero's third sweets acquisition in the country in less than a year as the Italian firm bets billions of dollars on an industry that many companies are turning away from in the wake of a slowdown.

Ferrero had about $12 billion in revenue in 2016.

Write to Eric Sylvers at eric.sylvers@wsj.com, Saabira Chaudhuri at saabira.chaudhuri@wsj.com and Annie Gasparro at annie.gasparro@wsj.com

(END) Dow Jones Newswires

January 16, 2018 12:43 ET (17:43 GMT)