Food

Ferrero buys WK Kellogg for $3.1 billion

The acquisition, which includes the production, marketing, and distribution of Wk Kellogg's iconic breakfast cereal portfolio in the US, Canada, and the Caribbean, ''is part of Ferrero's strategic growth plan and expands the company's reach into more consumer occasions with well-known and beloved brands and strong consumer relevance,'' the statement reads

9 July 2025aggiornato il 10 luglio alle ore 15,42

3' min read

The Ferrero Group and WK Kellogg announced that they have entered into a definitive agreement under which Ferrero has agreed to acquire WK Kellogg Co, for $23 per share in cash, for a total enterprise value of $3.1 billion. The company announced this in a note.

The acquisition, which includes the production, marketing, and distribution of WK Kellogg's iconic breakfast cereal portfolio in the US, Canada, and the Caribbean, ''is part of Ferrero's strategic growth plan and expands the company's reach into more consumer occasions with well-known and beloved brands and strong consumer relevance,'' the statement said.

Under the terms of the agreement, Ferrero will acquire the entire outstanding share capital of WK Kellogg co for $23 per share in cash, for a total enterprise value of $3.1 billion.

Upon completion of the transaction, WK Kellogg co's ordinary shares will no longer be traded on the New York Stock Exchange and the company will become a wholly-owned subsidiary of Ferrero.

The deal was unanimously approved by the WK Kellogg board of directors. This transaction, the note explained, ''represents another chapter in Ferrero's proven strategy of acquiring, investing in and growing iconic brands, while continuing to enhance its presence and product offering in North America. As a result of this strong growth, Ferrero and its affiliates now employ more than 14,000 people in 22 plants and 11 offices in North America''.

The North American portfolio includes Nutella, Kinder, Tic Tac and Ferrero Rocher, as well as iconic American brands such as Butterfinger, Keebler and Famous Amos. It also includes confectionery brands such as Jelly Belly, Nerds and Trolli, as well as frozen food brands such as Blue Bunny, Bomb Pop and Halo Top.

"I am thrilled to welcome WK Kellogg co into the Ferrero Group. This is more than just an acquisition: it represents the union of two companies, both with a glorious tradition and generations of loyal consumers," said Giovanni Ferrero , Executive Chairman of the Ferrero Group. For Gary Pilnick , Chief Executive Officer of WK Kellogg co this transaction ''maximises value for our shareholders and allows WK Kellogg to write the next chapter in our company's historic legacy. ''Joining Ferrero will provide WK Kellogg with more resources and greater flexibility to grow our iconic brands in this competitive and dynamic market,'' he added.

WK Kellogg is a food company based in Battle Creek, Michigan. It has a stock market value of 1.5 billion and debts of 500 million. It was formed in October 2023, the result of Kellogg's spin-off of its North American cereal business.

However, the group's roots go back into history: founder Will Keith Kellogg is considered the inventor of corn flakes, in 1894. Legend has it that the creation was accidental, but it certainly led to the birth of a company that revolutionised the morning food industry during the 20th century. Its products today include Froot Loops, Frosted Flakes and Rice Krispies.

WK Kellogg, now the object of Ferrero's desires, was created two years ago by the spin-off of the North American cereal division of the original Kellogg into a separate listed company. At the same time, the global snacks business took the name Kellanova to be sold to Mars for 30 billion in 2024.

Recently, however, WK Kellogg has also come under pressure in the face of changing consumer habits. Its turnover last year dropped to USD 2.7 billion from USD 2.76 billion. And it is also in the crosshairs of the Trump administration for the use of artificial colourings in its products, one of the crusades cherished by the new Health Secretary Robert F. Kennedy Jr. The confectionery and snack sector in America also generally remains at the centre of consolidation: PepsiCo took Siete Foods, JM Smucker took over Hostess Brands and Hershey's absorbed LesserEvil.

Marco ValsaniaGiornalista
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Luogo: New York, Usa
Lingue parlate: Italiano, Inglese
Argomenti: Economia, politica americana e internazionale, finanza, lavoro, tecnologia
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