Ferrero to Buy Maker of Halo Top, Bomb Pop
The Ferrero Group has agreed to acquire Wells Enterprises, its operations and its ice cream brands, which include Blue Bunny, Blue Ribbon Classics, Bomb Pop and Halo Top.
The move is part of Ferrero's strategic growth ambitions for the ice cream category and Wells' vision for accelerated growth, according to a joint news release.
Both companies are family owned. Ferrero — which started in 1946 as a small pastry shop in Alba, Italy — has grown to become a global manufacturer of sweet packaged foods, including confectionery, biscuits, ice cream and better-for-you-snacking. Its brands include Nutella, Kinder, Tic Tac and Ferrero Rocher. Wells, which was founded in 1913 as a dairy delivery wagon business, is headquartered in Iowa and distributes products across the U.S.
Under the merger agreement, Wells will remain a standalone business with its offices in Le Mars, Iowa, and production operations in Le Mars; Henderson, Nevada; and Dunkirk, New York.
When the transaction closes, Mike Wells, member of the founding family and current CEO and chief engagement officer, will serve as an adviser to support the transition and maintain his active role in the Le Mars community. Current Wells president Liam Killeen will be named the new CEO, and the rest of the existing leadership team will remain in place.
"We are a 100-year-old company focused on adapting for the next 100 years," said Mike Wells, in the release. "Ferrero is a likeminded company with a commitment to providing high-quality, premium sweet packaged food products that bring joy to consumers around the world. This acquisition puts the business in the best possible hands, and I look forward to supporting the entire Wells team and Ferrero with the transition."
This deal continues the Ferrero Group's expansion agenda in North America following the successfully managed acquisitions of Fannie May (2017), former Nestle U.S. confectionery business and Kellogg company's cookies and fruit snacks businesses (2018).
Ferrero's North American footprint expansion has been further strengthened through its related parties, with the acquisition of Ferrara Candy Co. (2017) — manufacturer and U.S. candy market category leader of well-loved brands Nerds, Trolli, Sweet-tarts and Black Forest.
Ferrero has also expanded its capabilities in the region, with an Innovation Center and R&D Lab in Chicago, as well as two major expansions to its plant in Bloomington, Illinois. The growth means the company and its related parties now have more than 8,000 employees, nine offices and 18 plants in North America.
The transaction is expected to close in early 2023. The terms are not being disclosed.
"I am delighted that Wells has agreed to join the Ferrero Group. This represents a win-win partnership, bringing together ice cream experts and confectionery champions,” said Giovanni Ferrero, executive chairman of the Ferrero Group. “Together, we have the power of one and are well placed to grow and compete in the ice cream market.”
"As Wells transitions from one family to another, we are committed to a long and successful future, building on their legacy of fantastic products and looking after the welfare of employees and the wider community in Le Mars," Giovanni Ferrero continued. "I strongly believe that Wells and Ferrero are the perfect match and would like to thank Mike Wells and the Wells family for entrusting ownership of this great company to us."
UBS Investment Bank acted as exclusive financial advisor and McDermott Will & Emery LLP served as legal counsel to Wells.
Morgan Stanley & Co. International PLC acted as exclusive financial advisor and Davis Polk & Wardwell LLP served as legal counsel to Ferrero.