Dive Brief:
- Italian chocolate purveyor Ferrero SpA has announced it would acquire smaller British rival Thorntons PLC for about £111.9 million, or $177.6 million, in cash.
- Ferrero is in the process of trying to meet a goal of doubling its annual revenue of $9 billion by the early 2020s. Thorntons would provide manufacturing opportunites in Britain for the Italian-based, family owned company.
- Ferrero has grown to become one of the largest chocolate producers in the world, including brands like Kinder, Nutella, Ferrero Rocher chocolates, and Tic Tac mints.
Dive Insight:
After Nestle SA acquired Rowntree and Mondelez International, Inc purchased Cadbury, this left Thorntons as one of the last of the UK's independent industrially-scaled chocolate makers. This move will give Ferrero not only another strong brand for its portfolio but a stronger foothold in the U.K. market as well. It could also mean a renewed focus on all distribution markets, including the U.S.