Media outlet CNBN broke the news that Twinkie-maker Hostess, Ferrero and B&G have entered first-round bids for Kellogg’s cookies and snacks assets.
Private equity firms are also competing for the cookie brands, it reported.
A Kellogg’s spokesperson has confirmed that “a formal process is underway [for] the potential divestiture of our cookies, fruit snacks, ice-cream cones and pie shells businesses” but “declined to comment on speculation.”
In November, the cereal giant announced it was planning to sell its North American cookies and fruit snack brands to focus on products with faster-growing sales.
At the time, Steven Cahillane, chairman and CEO, said Kellogg’s needed to “make strategic choices about our business and these brands have had difficulty competing for resources and investments within our portfolio.”
The deal – which includes Keebler, Famous Amos, Murray and Mother’s cookies and Stretch Island fruits snacks – could be valued at more than $1.5bn.
Hostess, B&G and Ferrero declined to comment.