Ferrero to acquire WK Kellogg in $3.1 billion deal

New Delhi: Italian confectionery group Ferrero has announced a definitive agreement to acquire WK Kellogg Co for $23.00 per share in cash, valuing the deal at approximately $3.1 billion. The transaction includes the manufacturing, marketing and distribution of WK Kellogg’s cereal portfolio across the United States, Canada and the Caribbean.

The acquisition adds established cereal brands such as Kellogg’s Frosted Flakes, Froot Loops, Special K, Mini Wheats, Rice Krispies, Raisin Bran, Kashi, and Bear Naked to Ferrero’s North American operations. The move is part of Ferrero’s broader expansion in the region and follows a series of acquisitions in the food and confectionery space.

“I am thrilled to welcome WK Kellogg Co to the Ferrero Group. This is more than just an acquisition, it represents the coming together of two companies, each with a proud legacy and generations of loyal consumers,” said Giovanni Ferrero, Executive Chairman of the Ferrero Group. “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. Today's news is a key milestone in that journey, giving us confidence in the opportunities ahead.”

WK Kellogg became an independent, publicly listed company in October 2023, following its separation from the Kellogg Company. Commenting on the acquisition, WK Kellogg Chairman and CEO Gary Pilnick said, “We believe this proposed transaction maximises value for our shareowners and enables WK Kellogg Co to write the next chapter of our company’s storied legacy.”

He added, “Joining Ferrero will provide WK Kellogg with greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market. As a family-owned private company with values in line with our founder W.K. Kellogg, Ferrero provides a great home for our people and has a track record of supporting the communities in which it operates.”

Ferrero’s presence in North America has grown significantly in recent years, with over 14,000 employees, 22 production facilities and 11 offices in the region. Its portfolio includes brands such as Nutella, Kinder, Tic Tac, Ferrero Rocher, Keebler, Butterfinger, Famous Amos, Blue Bunny, Bomb Pop and Halo Top.

Lapo Civiletti, CEO of the Ferrero Group, said, "WK Kellogg Co, a trusted company with beloved brands, represents a meaningful addition to the Ferrero Group. Enhancing our portfolio with these complementary household brands marks an important step towards expanding Ferrero’s presence across more consumption occasions and reinforces our commitment to delivering value to consumers in North America."

Following the completion of the transaction, Ferrero will retain Battle Creek, Michigan, WK Kellogg’s base as its North America cereal headquarters.