Ferrero Group to acquire WK Kellogg Co. cereal business for $3.1 billion

The Ferrero Group to acquire WK Kellogg Co. for $23 per share in cash, or a total enterprise value of $3.1 billion. The acquisition is part of Ferrero’s plan for strategic growth and will include the manufacturing, marketing and distribution of WK Kellogg Co's iconic portfolio of breakfast cereals across the United States, Canada, and the Caribbean. The company has been growing its overall footprint and product offerings in North America through acquisitions and investments. Currently, North America Ferrero and its affiliated companies have over 14,000 employees across 22 plants and 11 offices. Its North American portfolio includes Nutella, Kinder, Tic-Tac, and Ferrero Roche, in addition to iconic American brands such as Butterfinger, Keebler, and Famous Amos.

In 2022, Kellogg Company announced that it would split its business into three companies focusing on cereal, snacks, and plant-based foods. At the end of 2023, Kellogg finalized the separation with WK Kellogg Co focusing on cereal, and Kellanova focusing on snacks and food. With this acquisition of WK Kellogg Co., Ferrero intends to invest in and grow the Kellogg cereal brands.

"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, in a press release. "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 U.S. Today's news is a key milestone in that journey, giving us confidence in the opportunities ahead."

"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," said Gary Pilnick, chairman and CEO of WK Kellogg Co. "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."

The agreement was unanimously approved by the WK Kellogg Co. board of directors, but the transaction is still subject to approval by WK Kellogg Co. share owners, regulators, and other customary closing conditions. The transaction is expected to close in the second half of 2025.