Kellogg Company (NYSE: K) announced that it has closed the sale of Keebler cookies and other selected businesses to the Ferrero Group and its related companies.
"This sale strengthens our ability to focus on the areas of our business with the biggest growth opportunities, which is a key component of our Deploy for Growth Strategy," said Steve Cahillane, Kellogg's chairman and CEO.
The divestiture represents a portion of Kellogg's North America snacking business. Specifically, it includes select cookies businesses, including brands like Keebler, Mother's, Famous Amos, Murray's, and Murray's Sugar Free, as well as cookies manufactured for Girl Scouts of the United States of America. It also includes its Kellogg's Fruity Snacks fruit-flavored snacks, Stretch Island fruit Strips, pie crusts, and ice cream cones businesses.
Kellogg retains the rest of its North America snacking businesses, including its crackers, salty snacks, wholesome snacks, and toaster pastries brands.
"On behalf of the entire Kellogg family, I'd like to thank our departing colleagues for their many contributions to our business over the years," said Cahillane. "We wish them the very best as they embark on an exciting future."
The cash transaction is valued at $1.3 billion, and includes brands and assets primarily related to these businesses.