Kellogg Co said on Monday it would sell some assets including cookie brands Keebler and Famous Amos to Nutella maker Ferrero Group for $1.3 billion, to focus on its core cereal and snacks businesses.
The deal comes as Kellogg, like other packaged food companies, has been struggling to adjust to changing consumer tastes and rising competition.
Kellogg is also selling its fruit-flavored snacks, pie crusts and ice-cream cones businesses to Ferrero as part of the deal.
The businesses being sold had net sales of nearly $900 million in 2018, Kellogg said, adding the deal, which is expected to close by the end of July, will reduce 2019 adjusted earnings per share by less than 5 percent, excluding the impact of currency fluctuations.
Evercore was Kellogg’s lead adviser for the deal, while Goldman Sachs was co-adviser.
Shares of Kellogg, which makes Pringles chips, Eggo waffles and Pop-Tarts, rose about 2 percent before the bell.