Ferrero Buys WK Kellogg (KLG) for $3.1 Billion in Push Beyond Chocolate
The $23-per-share offer represents a 31% premium; shares of WK Kellogg jumped more than 30% to $22.85 on Thursday. The deal, expected to close in the second half of 2025, will bring Froot Loops, Frosted Flakes, and Special K under the same roof as Nutella, Tic Tac, and Kinder.
The acquisition gives Ferrero instant scale in the U.S. grocery market and much-needed diversification; cocoa prices hit record highs last year, pressuring chocolate-heavy brands.
Ferrero, led by executive chairman Giovanni Ferrero, has been on an acquisition spree; it bought Nestle's U.S. candy unit in 2018 for $2.8 billion. The company generated 18.4 billion ($19.2 billion) in revenue last year and continues to invest heavily in manufacturing and product expansion.
Michael Ashley Schulman of Running Point Capital Advisors said the deal offers Ferrero U.S. shelf space and an iconic brand portfolio at a relatively good price.
Kellogg's spin-off Kellanova, formed alongside WK Kellogg in a 2023 split, is also in play; Mars is reportedly close to acquiring it in a separate $36 billion deal.
This article first appeared on GuruFocus.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
8 hours ago
- Yahoo
SIGA to Host Business Update Call on August 5, 2025 Following Release of Second-Quarter 2025 Results
NEW YORK, July 29, 2025 (GLOBE NEWSWIRE) -- SIGA Technologies, Inc. (SIGA) (Nasdaq: SIGA), a commercial-stage pharmaceutical company, today announced that management will host a webcast and conference call to provide a business update at 4:30 P.M. ET on Tuesday, August 5, 2025. Participating in the call will be Diem Nguyen, Chief Executive Officer, and Daniel Luckshire, Chief Financial Officer. A live webcast of the call will also be available on the Company's website at in the Investor Relations section of the site, or by clicking here. Please log in approximately 5-10 minutes prior to the scheduled start time. Participants may access the call by dialing 1-800-717-1738 for domestic callers or 1-646-307-1865 for international callers. A replay of the call will be available for two weeks by dialing 1-844-512-2921 for domestic callers or 1-412-317-6671 for international callers and using Conference ID: 1130215. The archived webcast will be available in the Investor Relations section of the Company's website. About SIGA SIGA is a commercial-stage pharmaceutical company and leader in global health focused on the development of innovative medicines to treat and prevent infectious diseases. With a primary focus on orthopoxviruses, we are dedicated to protecting humanity against the world's most severe infectious diseases, including those that occur naturally, accidentally, or intentionally. Through partnerships with governments and public health agencies, we work to build a healthier and safer world by providing essential countermeasures against these global health threats. Our flagship product, TPOXX® (tecovirimat), is an antiviral medicine approved in the U.S. and Canada for the treatment of smallpox and authorized in Europe, the UK, and Japan for the treatment of smallpox, mpox (monkeypox), cowpox, and vaccinia complications. For more information about SIGA, visit Contacts:Suzanne Harnettsharnett@ and Investors Media Jennifer Drew-Bear, Edison GroupJdrew-bear@ Holly Stevens, CG Lifehstevens@
Yahoo
8 hours ago
- Yahoo
Boeing posts smaller loss as jet deliveries rise
(Reuters) -Boeing reported a smaller second-quarter loss on Tuesday as the U.S. planemaker ramped up jet production and deliveries, recovering from a regulatory crisis and a major strike that halted most production last year. Shares of the company rose 1.5% in premarket trading. After years of grappling with quality issues and production delays on its flagship 737 MAX, Boeing has cautiously ramped up monthly output this year. In May, the company produced 38 737s. Production has been stable since then, according to the company. "As we continue to execute our Safety & Quality Plan, there's more stability in our operations," CEO Kelly Ortberg said in a letter to Boeing employees on Tuesday. The U.S. Federal Aviation Administration had capped the production of Boeing's best selling 737 MAX jets following a mid-air panel blowout in a nearly new jet in January 2024. "We plan to seek FAA approval to increase to rate 42 when our key performance indicators (KPIs) show that we're ready," Ortberg added. It has delivered 206 737 MAX jets through the first half of the year. Wall Street closely tracks aircraft deliveries, because planemakers collect much of their payment when they hand over jets to customers. Boeing also increased 787 production at its plant in Charleston, South Carolina, from five aircraft a month to seven a month. Through the first half of the year, the planemaker has booked 668 orders, or 625 net orders after cancellations and conversions. An improvement in deliveries marks a pivotal step in Boeing's effort to rebound from years of production disruptions and crises that piled on debt, highlighting the urgency of accelerating output to restore financial stability. The planemaker posted a net loss of $612 million, or 92 cents per share, for the quarter through June, compared with $1.44 billion, or $2.33 per share, a year earlier. However, the planemaker continues to face pressure from supply chain disruptions that have delayed production and limited its ability to meet surging aerospace demand. It posted a loss of nearly $12 billion in 2024 due to challenges across its major business units including charges on its defense programs. It also remains exposed to U.S. President Donald Trump's sweeping tariffs, which could increase parts costs and further strain an already fragile supply chain. Boeing's revenue for the quarter through June rose 35% to $22.75 billion. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 hours ago
- Yahoo
Earnings, Trade Outlook Lift Wall Street Pre-Bell; Asia Mixed, Europe Up
Wall Street futures again pointed to fresh all-time records pre-bell Tuesday, as traders digested a Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
