Battle Creek, Michigan-based Kellogg Co. and its board of directors have approved the separation into two independent, publicly traded companies – Kellanova and WK Kellogg Co. The announcement was first shared in March.
Upon completion of the separation on Oct. 2, Kellogg Co. will be renamed Kellanova and will continue to trade on the New York Stock Exchange under the ticker symbol “K,” while WK Kellogg Co. is expected to begin trading on the NYSE under the ticker symbol “KLG.”
On Oct. 2, Kellogg shareowners of record as of Sept. 21, will receive one share of WK Kellogg Co. for every four shares of Kellogg Co. owned.
“After more than a year of comprehensive planning and execution, we are more confident than ever that the separation will produce two stronger companies and create substantial value for shareowners,” said Steve Cahillane, Kellogg Co.’s chairman and CEO.
Two stronger, focused companies
Kellanova will feature a portfolio that is weighted toward snacks and emerging markets and will be led by brands with opportunity for expansion. Building on a foundation of brands and a leading share position in North American cereal, WK Kellogg Co. will focus and integrate its commercial strategy and execution, while modernizing its supply chain. It expects this will result in improved competitiveness, profitability and cash flow.
“We are looking forward to a new era as Kellanova, marked by a more growth-oriented portfolio, a renewed vision and strategy, and an energized organization grounded by a winning culture and our founder’s values,” Cahillane said, who will remain chairman and CEO of Kellanova. “These elements build on what has already been a track record of strong and consistent financial performance for the Kellanova portfolio.”
WK Kellogg Co. projects net sales of approximately $2.7 billion and adjusted-basis EBITDA of approximately $255-$265 million in 2024. It expects to improve its adjusted-basis EBITDA margins by 500 basis points by the end of 2026, through supply chain modernization and a stable top-line trajectory.
“WK Kellogg Co. has a 117-year legacy of innovation and the soul of a start-up, with an organization incredibly energized by our future,” said Gary Pilnick, who will serve as WK Kellogg Co.’s chairman and CEO following the separation.
“As a standalone company, we will benefit immediately from the executional advantages of increased focus and end-to-end integration, while we modernize our supply chain and substantially improve our profit margins. We’re on a profitable journey to take this great business to the next level.”
In addition to the public filing of the Form 10, Kellogg Co. has posted supplemental business and other information about the company and WK Kellogg Co. to its investor website.
Read more additional information about the separation here.
Read more Kellogg Co. related news from The Shelby Report.
