Today, The Ferrero Group and WK Kellogg Co announced that they have entered into a definitive agreement, under which Ferrero will acquire WK Kellogg Co for $23.00 per share in cash, totaling $3.1 billion.
The transaction covers the manufacturing, marketing, and distribution of WK Kellogg Co., based in Battle Creek, and its breakfast cereal portfolio throughout the United States, Canada, and the Caribbean.
Ferrero’s acquisition aligns with its strategy for growth and brand diversification.
Giovanni Ferrero, Executive Chairman of the Ferrero Group told investors, “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. 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.”
Gary Pilnick, Chairman and Chief Executive Officer of WK Kellogg Co. commented, “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. Since becoming an independent public company in October 2023, we have made excellent progress on our journey to become a more focused and more profitable business – driven by our tremendous people and a winning culture – all while building a strong foundation for future growth.”
“Joining Ferrero will provide WK Kellogg Co 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. We look forward to collaborating with their team to deliver on the great promise of cereal, explore opportunities beyond cereal, and help us bring our best to consumers every day,” he concluded.
Lapo Civiletti, Chief Executive Officer of the Ferrero Group, added, “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.”
The deal, which still requires approval from Kellogg shareholders, is expected to close in the second half of the year.
Once the transaction concludes, Kellogg’s stock will cease trading on the New York Stock Exchange, and the company will become a Ferrero subsidiary. Before the announcement, WK Kellogg shares surged 50% amid rumors of the deal.
By CEO NA Editorial Staff
