Leaf to bid on Nestle’s candy business
According to the Orange County Business Journal, Leaf Brands has announced it will bid for Switzerland-based Nestlé SA’s U.S. candy business.
According to the Orange County Business Journal, Leaf Brands has announced it will bid for Switzerland-based Nestlé SA’s U.S. candy business. Leaf owns a half-dozen legacy candy brands, including its flagship product Hydrox sandwich cookies, and has annual sales this year of about $5 million.
Nestlé brands include Butterfinger, Baby Ruth, and Crunch bar, and had U.S. sales of about $922 million last year, a 2.9% market share. The company announced in June that it had begun exploring its strategic options for its U.S. confectionery business, including a potential sale.
Kassoff wants to line up private equity backing to bid on Nestlé’s business, which could fetch $3 billion, according to news reports. It could be a long shot for Leaf, seeing as Hershey and Mars are also expected to bid for Nestlé’s business.