Ferrero Buys Purely Elizabeth for $800m
The Italian chocolate giant expands its breakfast range with the acquisition of the US food company, which sells granola, oatmeal, and cereal
Ferrero has acquired US food company Purely Elizabeth, expanding its breakfast range, with the deal expected to be completed in the coming months pending regulatory approvals. The financial terms of the transaction were not disclosed, but Forbes estimates the deal to be worth over $800 million.
Purely Elizabeth sells breakfast products including granola, oatmeal, and cereal. The company has an estimated trailing 12-month revenue of $250 million. Elizabeth Stein, the founder and CEO of Purely Elizabeth, will retain her post along with the company's leadership team.
This acquisition is the latest in Ferrero's expansion into the breakfast market. Last year, the company acquired US breakfast cereals business WK Kellogg for $3.1 billion. Lapo Civiletti, president of Ferrero Ice Cream and WK Kellogg, described Purely Elizabeth as a 'highly complementary addition' to the company's portfolio.
Ferrero will support Purely Elizabeth's next phase of growth through continued product innovation, operational capabilities, and expanded distribution. The deal reflects Ferrero's long-term strategy to invest in high-growth categories and further enhance its presence in the better-for-you offerings across breakfast occasions and beyond.
## Why it matters The acquisition of Purely Elizabeth is significant for Ferrero as it expands its presence in the US breakfast market. The deal also highlights the growing demand for healthier breakfast options. Purely Elizabeth's products are popular among health-conscious consumers, and the company's estimated trailing 12-month revenue of $250 million demonstrates its growth potential.
The acquisition is also a significant milestone for Elizabeth Stein, who founded Purely Elizabeth 17 years ago. Stein will remain CEO of the company and will continue to lead its growth and development. The deal puts Stein in a unique position as a female founder who has successfully scaled her business and will continue to lead it after the acquisition.
## What happens next The deal is expected to be completed in the coming months pending regulatory approvals. Once the deal is completed, Ferrero will support Purely Elizabeth's next phase of growth through continued product innovation, operational capabilities, and expanded distribution. The acquisition is expected to further enhance Ferrero's presence in the US breakfast market and provide new opportunities for growth and development.
