Two big candy companies hope they can make a sweet combination.
Ferrara Pan, the company behind Lemonheads and Red Hots, announced Wednesday it was joining forces with Farley's & Sathers, a company known for the Brach's brand and Now and Later.
The new venture will carry the name of Ferrara Candy Company, Inc.
"This transaction brings together two well-positioned candy companies with iconic brands and loyal consumer and customer followings to create a category leader," said Salvatore Ferrara II, the chairman and CEO of Round Lake, Ill., based Ferrara Pan.
Catterton Partners, the investment firm behind Farley's & Sathers, will remain a majority investor, the companies announced.
The merger remains subject to regulatory approval. The companies did not disclose the terms of the merger.