Ferrero Finalizes $3.1 Billion WK Kellogg Acquisition, Solidifying US Market Dominance

Italian confectionery giant Ferrero has officially completed its $3.1 billion acquisition of WK Kellogg, the cereal maker behind iconic brands like Froot Loops and Corn Flakes. This landmark deal, one of the largest in the food industry this year, marks a significant milestone in Executive Chairman Giovanni Ferrero’s ambitious decade-long strategy to transform the family business into a global food powerhouse, particularly expanding its presence in the United States.

Since taking sole leadership in 2015, the billionaire executive chairman has spearheaded an aggressive acquisition spree, investing over $13 billion to acquire 21 companies across nine countries. This strategic expansion has nearly doubled Ferrero’s revenues to an estimated $20.4 billion in the year through August 2024, significantly boosting its EBITDA.

The WK Kellogg acquisition is poised to turbocharge Ferrero’s growth in the U.S., where it has made eight prior acquisitions since 2017, including Nestlé’s U.S. candy business and Kellogg’s cookie and fruit snack division. With WK Kellogg recording $2.7 billion in 2024 revenues, the deal is expected to further enhance Ferrero’s sales and bolster its bargaining power with retailers in the substantial North American cereal market.

Industry analysts note that this strategic move diversifies Ferrero beyond its traditional confectionery and snacking portfolio, leveraging WK Kellogg’s stable revenue base and cash generation. Giovanni Ferrero, now valued at an estimated $41.2 billion, continues to drive the company towards his goal of doubling its size, positioning Ferrero as a formidable contender among the world’s largest food corporations.

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