Newly formed Ferrara Pan Co., to close facilities

Round Lake, Minn., Chattanooga, Tenn. facilities to close

About a week after Farley’s & Sathers and Ferrara Pan Candy Co. made their merger official — creating the Ferrara Candy Co. — they’re announcing plans to close facilities in Minnesota and Tennessee.

Specifically, the Farley’s & Sather’s Round Lake, Minn. facility will be closed, as a result of the newly formed company being headquartered in Chicago. The closing will be a phased process that begins this summer and lasts through the spring of 2013, Ferrara Candy Co. said in a statement.

A packaging and distribution center at Cummings Road in Chattanooga also will be closed in the fall of this year, as its functions are consolidated into other facilities. In addition, the Sather Trucking Co. based in Chattanooga will be closed in the fall, the company says.

“Bringing two companies together results in many opportunities, but also requires some necessary changes as part of integration planning,” Ferrara Pan Candy Co., explains in statement. “These transitions are a logical result of the merger. Together, we are creating a leading general line candy manufacturer that is more efficient and well-positioned to grow faster and take innovation to the next level. “

The company says it plans to provide assistance to ease the transition for those affected, including providing severance, outplacement services and internal opportunities.

The two companies first announced their merger in late May, and made it official June 18.

Both companies were on the Candy Industry’s Global Top 100 this year. Round Lake, Minn.-based Farley’s & Sathers ranked 26, with an estimated $670 million in sales, while Chicago-based Ferrara Pan ranked 40, with an estimated $420 million in sales. (Editor’s note: Subsequent revised estimates have placed Ferrara Pan’s sales at $324 million).

Ferrara Pan manufactures both branded and private-label confections including Lemonheads, Red Hots, Black Forest, Atomic Fireballs and Boston Baked Beans.

And, Farley's & Sathers is a leading manufacturer and distributor of confectionery and gum products including Brach's, Now and Later, Trolli, and Chuckles.

News of the merger comes just months after Sal Ferrara’s father, Nello passed away Feb. 3 at 93 years old.

Terms of the transaction were not disclosed.

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