Farley's & Sathers Candy Co., Inc. and Ferrara Pan Candy Co., Inc. announced the signing of a definitive merger agreement under which the two companies will combine to create a general line candy manufacturer. The combined company, Ferrara Candy Co., Inc., will maintain the century-old Ferrara name and will be led by longtime industry leader Salvatore Ferrara II, the chairman and CEO of Ferrara Pan. Terms of the transaction were not disclosed.
Ferrara Pan manufactures both branded and private label confections including Lemonheads®, Red Hots®, Black Forest®, Atomic Fireballs® and Boston Baked Beans®. Farley's & Sathers is a leading manufacturer and distributor of quality confectionery and gum products including Brach's®, Now and Later®, Trolli®, Jujyfruits® and Chuckles®. The combination will leverage Ferrara Pan's and Farley's & Sathers' combined portfolio of products, collective knowledge of confections, category management expertise, and broad supply chain to offer superior branded and private label solutions to their customers and consumers.
"This transaction brings together two well-positioned candy companies with iconic brands and loyal consumer and customer followings to create a category leader," said Ferrara, Ferrara Pan's CEO, in a prepared statement. "Farley's & Sathers has significant expertise in confections and a strong portfolio of brands that connect with consumers, and both companies have outstanding teams of hard working employees. I look forward to working with the combined team to leverage our joint expertise to continue to delight our customers with our current confections and innovate to develop new offerings."
Catterton Partners, the leading consumer-focused private equity firm, which owns Farley's & Sathers, will remain as a majority investor in the combined company.
"We are very proud of the many accomplishments of Farley's & Sathers since our investment in 2002," said Scott Dahnke, managing partner of Catterton Partners. "Through both organic growth and strategic acquisitions, as well as enhanced marketing and distribution strategies and new product introductions, Farley's & Sathers has experienced significant growth and satisfied the desires of loyal consumers and retailers alike. Together with Ferrara Pan, this combination portends an exciting future and will allow the combined company to continue to grow faster, increase efficiencies, and take innovation to the next level. As shareholders, we are confident that this merger will be a great success."
The transaction remains subject to applicable regulatory approval and satisfaction of other customary closing conditions.
