Ferrero to acquire Kellogg CO for $3.1 billion
July 10 (UPI) -- Italy's Ferrero will acquire U.S. cereal maker WK Kellogg in a $ 3.1 billion deal, the companies announced Thursday.
The agreement includes manufacturing, marketing and distribution of WK Kellogg's portfolio of breakfast cereals across the United States, Canada and the Caribbean.
Pending approval from shareholders, $23 per share cash deal is expected to close in the latter half of the year.
Ferrero plans to invest in WK Kellogg's brands such as Frosted Flakes, Froot Loops, Mini Wheats, Special K, Rice Krispies, Raisin Bran, Bear Naked and more as it seeks to expand growth.
"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.," Ferrero Group executive chair Giovanni Ferrero said.
Ferror recently purchased Nestle's candy business in the United States and Wells Enterprises, which owns Halo Top ice cream.
In 2023, the Kellogg Company split itself into two companies, with WK Kellogg maintaining its cereal business while a separate company, Kellanova, maintained its snack offerings.
"We believe this proposed transaction maximizes value for our shareowners and enables WK Kellogg Co to write the next chapter of our company's storied legacy," WK Kellogg CEO Gary Pilnick said.
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