Kellogg’s (K) has agreed a $1.3bn (£1bn) sale of a number of non-cereal food assets to Italian confectionery giant Ferrero.

Ferrero will take ownership of Kellogg’s cookie, fruit and fruit-flavoured snack, ice cream cone and pie crust businesses, which generated sales of around $900m last year.

Most notably Ferrero will acquire a number of established brands in the cookie category, including the Keebler cookie brand, Famous Amos and Mother’s.

Ferrero will also acquire the Kellogg fruit snacks business, including Stretch Island and Fruity Snacks along with Keebler’s ice cream cones and pie crust products.

Ferrero said the deal will table it to enter new strategic product categories and will “further strengthen its position in the North American market” having bought up a number of other US brands in recent years, including the US confectionery business of Nestlé

Executive chairman Giovanni Ferrero commented: “Kellogg Company’s cookie, fruit snack, ice cream cone and pie crust businesses are an excellent strategic fit for Ferrero as we continue to increase our overall footprint and product offerings in the North American market.

“With this transaction, I look forward to bringing many iconic Kellogg brands into the Ferrero portfolio, to welcoming our new colleagues to the extended Ferrero community, and to continuing Ferrero’s strong track record of growing brands, as we have through our successful acquisitions of Fannie May, Ferrara Candy Company, and the former Nestlé US confectionary business. We have great respect for Kellogg, its legacy and values, and are proud that Kellogg has chosen Ferrero as a good home for these businesses.”

Kellogg will retain the rest of its North America snacking businesses, including its crackers, salty snacks, wholesome snacks, and toaster pastries brands.

Kellogg’s CEO Steve Cahillane commented: “”This divestiture is yet another action we have taken to reshape and focus our portfolio, which will lead to reduced complexity, more targeted investment, and better growth.”

“Divesting these great brands wasn’t an easy decision, but we are pleased that they are transitioning to an outstanding company with a portfolio in which they will receive the focus and resources to grow.”

Kellogg will retain the rest of its North America snacking businesses, including its crackers, salty snacks, wholesome snacks, and toaster pastries brands.

Lapo Civiletti, CEO of the Ferrero Group, added: “We are acquiring a portfolio of well-established brands that consumers love, with very strong market positions across their respective categories, allowing us to significantly diversify our portfolio and capitalize on exciting new growth opportunities in the world’s largest cookies market.”

The transaction, subject to customary closing conditions and regulatory approvals, is expected to close in the second half of the year.