The Ferrero Group has agreed to acquire WK Kellogg Co. for $23 per share in cash, representing a total enterprise value of $3.1 billion.
The acquisition, which includes the manufacturing, marketing and distribution of WK Kellogg Co.’s portfolio of breakfast cereals across the U.S., Canada and the Caribbean, expands Ferrero’s reach with renowned brands and strong consumer relevance.
Upon the completion of the transaction, shares of WK Kellogg Co’s common stock will no longer trade on the New York Stock Exchange, and the company will become a wholly owned subsidiary of Ferrero.
The agreement has been unanimously approved by the board of directors of WK Kellogg Co. In addition, Battle Creek, Michigan, will remain a core location for the company and will be Ferrero’s headquarters for North America cereal.
Ferrero said the acquisition is part of the company’s strategy to acquire, invest in and grow iconic brands as it enhances its overall footprint and product offerings in North America. As a result, Ferrero and its affiliated companies count more than 14,000 employees across 22 plants and 11 offices on the continent.
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 such as Blue Bunny, Bomb Pop and Halo Top.
Drawing upon its previous acquisitions in the United States, Ferrero plans to invest in and grow WK Kellogg Co’s brands, including Frosted Flakes, Froot Loops, Frosted Mini Wheats, Special K, Rice Krispies, Raisin Bran, Kashi and Bear Naked, among others.
[RELATED: Kellogg Co. Separates Into Two Companies: Kellanova, WK Kellogg Co.]
“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 U.S. Today’s news is a key milestone in that journey, giving us confidence in the opportunities ahead.”
Gary Pilnick, chairman and CEO of WK Kellogg Co., said the proposed transaction “maximizes value for our shareowners and enables WK Kellogg Co. to write the next chapter” of its 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,” he said. “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.”
[RELATED: Mars Inc. To Acquire Kellanova In $36B Deal]