The firms claim the merger will create a “leading general line candy manufacturer” in the US.
Ferrara Pan produces branded and private label sugar confectionery through brands including Lemonheads, Red Hots, Black Forest and Atomic Fireballs.
Farley's & Sathers claims to be among the top 25 confectioners in the world. It is headquartered in Round Lake, Minnesota and manufactures confectionery and gum products including Brach's, Now and Later and Trolli
Financial details of the merger were not disclosed.
Deal to foster growth
Salvatore Ferrara, Ferrara Pan's CEO said: “This transaction brings together two well-positioned candy companies with iconic brands and loyal consumer and customer followings to create a category leader.”
Mr Ferrera will become chairman and CEO of the new company and private equity firm Catterton Partners which owns Farley's & Sathers, will remain as a majority investor in the combined company.
Scott Dahnke, managing partner of Catterton Partners, added: “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."
Farley's & Sathers was only established in 2002 and has since grown its market share through bolt-on acquisition including Now and Later, Trolli and Brach’s Confections.
It claims to manufacture a million pounds of gummies each week at its four manufacturing sites in the US and two in Mexico.
Ferrara Pan Candy is a private company based in Illinois and has a longer history than Farley’s, that dates back to 1908.
The firm has five production facilities located in the United States, Canada and Mexico, and employs around 800 people.