Farley & Sather's, makers of the Trolli gummie bears, is set to merge with Ferrara Pan, makers of Lemonheads. The new company will be called Ferrara Candy Co., Inc.

Farley’s & Sathers and Ferrara Pan have officially announced that their Red Hot merger is happening Now, rather than Later.

The two will combine to create, Ferrara Candy Co., Inc., maintaining the century-old Ferrara name. And Salvatore Ferrara II, current chairman and ceo of Ferrara Pan, will lead it.

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.)

"This transaction brings together two well-positioned candy companies with iconic brands and loyal consumer and customer followings to create a category leader," says Ferrara. "Farley's & Sathers has significant expertise in confections and a strong portfolio of brands that connect with consumers, and both companies have outstanding teams of hard working employees."

He added that he looks forward to working with the combined team to leverage joint expertise to continue current confection brands and innovate new offerings.

Catterton Partners, a consumer-focused private equity firm, which owns Farley's & Sathers, will remain as a majority investor in the combined company.

"We are very proud of the many accomplishments of Farley's & Sathers since our investment in 2002," says Scott Dahnke, managing partner of Catterton Partners. "As shareholders, we are confident that this merger will be a great success."

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, Jujyfruits 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.