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Ferrero to acquire WK Kellogg Co for £2.3 billion

WK Kellogg Co cereal brands acquired by Ferrero, including Frosted Flakes and Special K

WK Kellogg Co brand portfolio

Key Summary

 
  • Acquisition supports Ferrero's portfolio expansion and growth in North America by adding WK Kellogg Co's cereal brands
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  • WK Kellogg Co shareowners to receive $23.00 per share in cash representing 40 per cent premium to 30-day volume weighted average trading price
 

Italian confectionery giant Ferrero Group and American food major WK Kellogg Co today announced that they have entered into a definitive agreement under which Ferrero has agreed to acquire WK Kellogg Co, for $23.00 per share in cash, representing a total enterprise value of $3.1 billion (£2.3bn).

The acquisition, which includes the manufacturing, marketing and distribution of WK Kellogg Co's portfolio of breakfast cereals across the US, Canada and the Caribbean, is part of Ferrero's plan for strategic growth and expands the company's reach across more consumption occasions with renowned beloved brands and strong consumer relevance.


WK Kellogg Co. was created in October 2023, as part of a spin-off from Kellogg Company, which then became Kellanova. WK Kellogg Co. represents the North American cereal business, while Kellanova focuses on global snacking, international cereal and noodles, plant-based foods, and North American frozen foods.

Kellanova is meanwhile set to merge with American food business Mars in a deal valued at $35.9 billion. US Federal Trade Commission has last month cleared the takeover, but the European Union is currently conducting an antitrust investigation into the acquisition over concerns it would lead to higher prices for consumers.

Portfolio expansion

Ferrero said the transaction represents another chapter in its strategy to acquire, invest in, and grow iconic brands as it continues to enhance its overall footprint and product offerings in North America, where it has more than 14,000 employees across 22 Plants and 11 offices.

The North America portfolio includes Nutella, Kinder, Tic Tac, and Ferrero Rocher as well as American brands such as Butterfinger, Keebler, and Famous Amos. It also includes confectionery brands like Jelly Belly, NERDS, and Trolli as well as frozen treat brands like Blue Bunny®, Bomb Pop®, and Halo Top®.

Drawing upon its previous successful acquisitions in the United States, Ferrero plans to invest in and grow WK Kellogg Co's popular brands including Kellogg's Frosted Flakes, Kellogg's Froot Loops, Kellogg's Frosted Mini Wheats, Kellogg's Special K, Kellogg's Rice Krispies, Kellogg's Raisin Bran, Kashi, Bear Naked, and more.

“I am thrilled to welcome WK Kellogg Co to the Ferrero Group. This is more than just an acquisition – it represents the coming together of two companies, each with a proud legacy and generations of loyal consumers,” said Giovanni Ferrero, Executive Chairman of the Ferrero Group.

“Over recent years, Ferrero has expanded its presence in North America, bringing together our well-known brands from around the world with local jewels rooted in the US. Today's news is a key milestone in that journey, giving us confidence in the opportunities ahead.”

Gary Pilnick, Chairman and Chief Executive Officer of WK Kellogg Co, said: “We believe this proposed transaction maximises value for our shareowners and enables WK Kellogg Co to write the next chapter of our company's storied legacy.”

“Since becoming an independent public company in October 2023, we have made excellent progress on our journey to become a more focused and more profitable business – driven by our tremendous people and a winning culture – all while building a strong foundation for future growth. Joining Ferrero will provide WK Kellogg Co with greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market.

“As a family-owned private company with values in line with our founder W.K. Kellogg, Ferrero provides a great home for our people and has a track record of supporting the communities in which it operates. We look forward to collaborating with their team to deliver on the great promise of cereal, explore opportunities beyond cereal, and help us bring our best to consumers every day.”

Similar to WK Kellogg Co, Ferrero traces its roots to humble beginnings as a family business, still operating in the town where they were founded. After the transaction closes, Battle Creek, MI will remain a core location for the company and will be Ferrero's headquarters for North America cereal.

The transaction is subject to approval by WK Kellogg Co shareowners, regulatory approvals and other customary closing conditions and is currently expected to close in the second half of 2025.