BATTLE CREEK, Mich. (WOOD) — Italian chocolate maker Ferrero is buying WK Kellogg Co. in a potential deal worth more than $3 billion.
The sale is expected to be finalized before the year is out, the companies announced Thursday.
Ferrero will buy Kellogg for $23 per share in cash for a total of about $3.1 billion. The deal has been approved by Kellogg’s board of directors, though it still needs to be approved by shareholders and regulators.
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“WK Kellogg Co is a renowned company, in operation for nearly 120 years, and a leader shaping the future of breakfast. Ferrero, which also brings over 75 years of heritage, has long admired WK Kellogg Co’s legacy and is proud to be entrusted with carrying these iconic American brands forward,” reads a press release announcing the deal.
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Headquartered in Battle Creek, Michigan, WK Kellogg makes cereals including Rice Krispies, Frosted Flakes and Froot Loops. It became a standalone company in 2023, when the Kellogg Company split into two: WK Kellogg, with a focus on North American cereals, and Kellanova, which includes snack foods and international cereals.
CNBC reported that shares of WK Kellogg fell about 2% this year, but they soared following Wednesday’s news of the potential deal.
“We believe this proposed transaction maximizes value for our shareowners and enables WK Kellogg Co to write the next chapter of our company’s storied legacy,” WK Kellogg Co. CEO Gary Pilnick said. “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,” Pilnick added.
When the deal goes through, Ferrero will own all manufacturing, marketing and distribution of Kellogg products in the U.S., Canada and the Caribbean. The company said it intended to “invest in and grow” big Kellogg brands like Frosted Flakes, Froot Loops, Frosted Mini Wheats, Special K, Rice Krispies, Raisin Bran, Kashi and Bear Naked.
Ferrero is the world’s third largest chocolate confectionary company, with products available in more than 170 countries, according to its website. Its brands include Nutella, Butterfinger, Kinder, Blue Bunny and Ferrero Rocher.
