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Nutella maker Ferrero buys U.S. confectioner Fannie May

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Reuters MILAN
Last Updated : Mar 16 2017 | 11:07 PM IST

MILAN (Reuters) - Nutella maker Ferrero has signed a deal to buy U.S. confectioner Fannie May from online retailer 1-800-FLOWERS.COM for $115 million in a move to strengthen the Italian company's presence in the overseas market, they said in a joint statement.

Fannie May, founded in Chicago in 1920, makes chocolate bars, praline and chocolate snacks that are sold mainly through 1-800-FLOWERS.COM.

"The United States represents an important market with a high growth potential for Ferrero and we are excited to support the development of a great American brand," Ferrero Chief Executive Giovanni Ferrero said in a statement on Thursday.

The United States is the fifth-biggest market for the Italian group, whose total revenue was 10 billion euros ($10.7 billion) in the financial year ended in August.

As part of the deal, Ferrero said it would sign a commercial partnership with 1-800-FLOWERS.COM to offer some of its and Fannie May's products on the online platform.

($1 = 0.9318 euros)

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(Reporting by Francesca Landini and Giancarlo Navach; editing by Susan Thomas)

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First Published: Mar 16 2017 | 10:52 PM IST

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