Kellogg is finally getting out of the cookie business.
On Monday, the snack giant announced that it plans to sell its iconic cookies assets, which include Keebler, Famous Amos and the cookies manufactured for Girl Scouts of the USA to Nutella-owner Ferrero for $1.3 billion.
The Battle Creek, Michigan-based company has been trying to offload the brands, which also include its fruit-flavored snacks, pie crusts and ice cream cone businesses since November to instead focus on its salty and wholesome snacking portfolio. The company reportedly had difficulty devoting necessary resources to the assets to compete in the increasingly crowded cookie and sweet market.
In a statement, Kellogg Chairman and CEO Steve Cahillane said the “divestiture is yet another action we have taken to reshape and focus our portfolio, which will lead to reduced complexity, more targeted investment, and better growth.”
However, Cahillane noted that parting with the iconic treats wasn’t an easy decision, but they are happy with the new owner.
The deal also comes as Italian chocolate maker Ferrero has aggressively expanded its portfolio into the U.S. over the past few years.
In 2017, Ferrero bought Ferrara Candy Co., the maker of Lemonheads and RedHots for $1.3 billion and then, a year later, it bought Nestle’s U.S. candy business for about $2.8 billion.
According to CNBC, Ferrero beat out lead contender Hostess Brands for Kellogg’s assets.