Ferrero to Acquire WK Kellogg in $3.1 Billion Deal, Bolstering North American Presence
Ferrero to Acquire WK Kellogg in $3.1 Billion Deal, Bolstering North American Presence
Italian confectionery powerhouse Ferrero Group, globally recognized for brands like Nutella and Kinder, is set to acquire WK Kellogg Co. for approximately $3.1 billion. This significant transaction, valued at $23 per share, marks a strategic expansion for Ferrero into the North American breakfast cereal market, aiming to broaden its product portfolio beyond snacks and sweets.
The acquisition includes WK Kellogg Co.’s entire breakfast cereal business, encompassing iconic brands such as Corn Flakes, Froot Loops, and Rice Krispies, along with its six manufacturing plants and extensive marketing and distribution channels across the United States, Canada, and the Caribbean. Following the announcement, WK Kellogg’s shares surged by 31%, reflecting market confidence in the deal.
This move aligns with Ferrero’s aggressive strategy to grow its U.S. footprint, following previous acquisitions like Nestle’s U.S. candy brands in 2018 and ice cream maker Wells Enterprises in 2022. The acquisition comes as WK Kellogg has navigated declining U.S. cereal consumption and challenges such as a major worker strike in late 2021.
The deal is anticipated to close in the second half of 2025, pending shareholder approval. Upon completion, WK Kellogg Co. will become a Ferrero subsidiary and will no longer be traded on the New York Stock Exchange.
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