Kellogg Company has signed an agreement to acquire Kraft's Nabisco fruit snacks manufacturing facility in Chicago. The transaction, expected to be finalized by the end of June, will help Kellogg expand its fruit snacks business. In addition, Kellogg has acquired the Nickelodeon Fruit Snacks license commensurate with this sale.

"We continue to pursue the right kind of opportunities to grow our snacks business consistent with our current strategy," said Jeff Montie, president, Kellogg North America. "We entered the fruit snacks business in 2003 and already Kellogg has become the second largest player in the category. This transaction positions us for even greater growth in this part of our business."

The plant to be acquired has 300,000 square feet of manufacturing, office and warehouse space, plus additional space for internal expansion and available land for external expansion. Kraft has approximately 400 employees at the facility, virtually all of whom are expected to join Kellogg upon closing.

Source: Company Release