Nestle has confirmed it has sold its US confectionery business to Ferrero for US $2.8 billion (AUD $3.5 billion).

The acquisition sees Italy-based Ferrero acquire a number of US confectionery brands including Crunch, Butterfinger, BabyRuth and Raisinets.

Ferrero is already responsible for a number of confectionery brands including Ferrero Rocher, Nutella chocolate hazelnut spread, Kinder Surprise and Tic Tac.

Nestle Chief Executive Officer, Mark Schneider, said Nestle has found an “exceptional home” for its US confectionery with Ferrero.

“At the same time, this move 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,” Schneider said.

Nestle’s US confectionery business only accounted for approximately 3 per cent of US Nestle’s group sales annually.

The sale does not include Nestle’s Toll House baking products. Nestle says its Toll House brand is a strategic growth brand which it will continue to develop.

“Nestle remains fully committed to growing its leading international confectionery activities around the world, particularly its global brand KitKat,” Nestle stated.

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