Nutella maker Ferrero Group on Thursday agreed to buy the Ferrara Candy Company, maker of Brach’s — in a deal that sources said will sweeten the odds of its buying Nestle’s US confectionery business.
A deal for Nestle’s US operation, which includes the Butterfinger brand, is expected to fetch more than $2 billion, sources told The Post.
The price tag on the Ferrara acquisition was not disclosed, but sources pegged it at about $1.25 billion.
Ferrero, an Italian candy maker whose products include Ferrero Rocher, a foil-wrapped chocolate and hazelnut confection, did not want to buy the on-the-block Nestle US confectionery business without a significant US platform to fold it into, sources said. The Ferrara deal gives it such a platform.
“They now will have lots of synergies and great management expertise,” a source said.
Family-run Ferrero generated $11 billion in sales before buying Fannie May in May for $115 million.
Ferrero is already planning on opening an innovation center on Cornell’s campus in Roosevelt Island.
Nestle’s products to be sold include SweeTarts, Raisinets and Baby Ruth. Nestle hopes to sell the business by Dec. 31.
Private equity firm L Catterton tried to sell Ferrara last year and turned down bids that were for more than $1.4 billion, a source said.
Since then, Ferrara’s earnings have declined.
Ferrero and L Catterton declined to comment.