Nestlé to sell off US candy business

If your next Butterfinger tastes like Nutella, news that was announced Tuesday might explain why. Nestlé has announced plans to sell off its U.S. confectionery business to Ferrero for $2.8 billion in cash in a deal that is expected to close around the end of the first quarter of 2018. Ferrero, the maker of Nutella, Ferrero Rocher, and Tic Tacs, will assume ownership of brands like Butterfinger, Crunch and BabyRuth, but not Nestlé’s Toll House baking products. Nestlé will also retain its international confectionery brands. In a statement, Nestlé CEO Mark Schneider said the sale “allows Nestlé to invest and innovate across a range of categories where we see strong future growth and hold leadership positions, such as pet care, bottled water, coffee, frozen meals and infant nutrition.”