Updated May 29, 11:30 a.m.
Dentists take note: Ferrara Pan Candy Company Inc., the Forest Park-based creator of Lemonheads, Atomic Fireballs and Boston Baked Beans, announced May 23 that it would merge with Farley’s and Sathers, the Minnesota-based creator of gum-based candies such as Jujyfruits and Chuckles. The new company will be called Ferrara Candy Company Inc., and the CEO will be Sal Ferrara II, CEO and chairman of Ferrara Pan, according to a press release.
The merger was leaked in February by Crain’s Chicago Business, less than a month after the death of patriarch Nello Ferrara at age 93. According to Crain’s, Ferrara Pan is valued at more than $400 million.
“Both companies have outstanding teams of hard-working employees,” Sal Ferrara said in a press release. “I look forward to working with the combined team to leverage our joint expertise.”
The agreement sells a majority share of Ferrara Pan to Farley’s and Sathers, which has sales of $615 million, according to Crain’s. The company acquired Brach’s Confections in 2007. Farley’s is headquartered in Round Lake, Minn.
A silent majority stakeholder will be Catterton Partners, a New Jersey-based private equity firm that specializes in consumer products such as Cheddars, Noodles and P.F. Chang’s China Bistro restaurants and Build-a-Bear and Restoration Hardware, among others. Catterton had previously been seeking a buyer for Farley’s and Sathers.
Terms of the merger were not disclosed this morning.
Ferrara Pan has been headquartered in Forest Park since it bought and converted the Borden Dairy facility in 1959. The company built a state-of-the-art chocolate factory in Maywood within the past five years.