Luxembourg / Battle Creek, MI – The Ferrero Group has agreed to acquire WK Kellogg Co for $23 per share in cash, valuing the cereal maker at $3.1 billion and representing a 40% premium to its 30-day average share price. The deal gives Ferrero ownership of household breakfast brands including Kellogg’s Frosted Flakes®, Froot Loops®, Special K®, Rice Krispies®, Raisin Bran®, and Kashi®, expanding its footprint beyond confectionery and into more daily eating occasions.
The acquisition covers the manufacturing, marketing, and distribution of WK Kellogg Co products across the United States, Canada, and the Caribbean. Ferrero says it plans to invest in and grow the 120-year-old cereal company’s brands, while keeping Battle Creek, Michigan, as the headquarters for its North American cereal operations.
Ferrero, known globally for Nutella®, Kinder®, Tic Tac®, and Ferrero Rocher®, has been steadily expanding its U.S. presence, previously acquiring American brands such as Keebler®, Butterfinger®, and Famous Amos®. The addition of WK Kellogg Co aligns with its strategy of buying and growing iconic brands with deep consumer loyalty.
WK Kellogg Co became a standalone public company in October 2023. CEO Gary Pilnick said joining Ferrero will provide “greater resources and more flexibility” to grow in the competitive cereal market and potentially expand beyond it.
The transaction is subject to customary closing conditions.
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Key Points
- Ferrero acquiring WK Kellogg Co for $3.1B, paying $23 per share in cash
- Deal includes major U.S. cereal brands and keeps Battle Creek as cereal HQ
- Acquisition part of Ferrero’s broader North American growth strategy
