Davis Polk is advising The Ferrero Group on its $2.8 billion acquisition of Nestlé’s U.S. confectionary business. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close around the end of the first quarter of 2018.
Founded in 1946, Ferrero is the third-largest company in the global chocolate confectionery market, with brands that include Nutella, Kinder, Ferrero Rocher and Tic Tac. Ferrero will acquire more than 20 American brands from Nestlé, including chocolate brands such as Butterfinger, BabyRuth, 100Grand, Raisinets, Wonka and the exclusive right to the Crunch brand in the United States for confectionary and certain categories, as well as sugar brands such as SweeTarts, LaffyTaffy and Nerds.
The Davis Polk corporate team includes partners John A. Bick and Daniel Brass and associate Abraham Einhorn. Partner Pritesh P. Shah, counsel David R. Bauer and associate Paul S. Lee are providing intellectual property and technology advice. Partner David H. Schnabel and associate Isaac MacDonald are providing tax advice. Partner Jean M. McLoughlin and counsel David Mollo-Christensen are providing executive compensation advice. All members of the Davis Polk team are based in the New York office.