The basics:

• Ferrero to buy WK Kellogg for $3.1 billion in all-cash deal
• Adds iconic cereal brands including Frosted Flakes, Special K
• Battle Creek site to remain HQ for North American cereal
• WK Kellogg to become wholly owned Ferrero subsidiary

European sweets and snacks maker the Ferrero Group plans to acquire breakfast cereal giant WK Kellogg in a deal worth $3.1 billion.

Under the terms of the transaction announced July 10, Ferrero would gain access to a portfolio of well-loved brands, like Frosted Flakes, Special K, Apple Jacks, Rice Krispies, Froot Loops and Raisin Bran.

As part of the agreement, Ferrero will pay $23 per share in cash for WK Kellogg, which is a 40% premium on the company’s recent stock price. After the transaction’s expected close in the second half of 2025, Ferrero said WK Kellogg’s home in Battle Creek, Mich., will remain a “core location” and serve as its headquarters for North American cereal.

WK Kellogg will also become a wholly owned subsidiary of Ferrero. Its stock will no longer trade on the New York Stock Exchange, the companies said.

Global growth

After starting as a small pastry shop in Italy nearly 80 years ago, Ferrero has grown to become a global leader in sweet-packaged foods, such as confectionery, biscuits, ice cream and better-for-you-snacking. The company boasts over 35 brands sold in more than 170 countries.

Since entering the North American market in 1969, the Parsippany-based division now has more than 14,000 employees in 11 offices and 22 plants in the U.S., Canada and the Caribbean.

Its lineup includes Nutella, Kinder, Tic Tac, Ferrero Rocher, Butterfinger, Keebler, Famous Amos, Nerds, Trolli, and Jelly Belly.

In recent years, Ferrero has expanded its footprint in North America through acquisitions, including Fannie May Confections Brands, Nestle’s U.S. candy business, Kellogg’s fruit snacks and cookies division, Ferrara Candy Co. and the parent company of Halo Top and Blue Bunny.

Though WK Kellogg was officially created in 2023 as a cereal-focused spinoff of the former Kellogg Co., its roots go back nearly 120 years. Ferrero said aims to “invest in and grow” WK Kellogg’s products and is “proud to be entrusted with carrying these iconic American brands forward.”

A seat at the breakfast table

In a statement, Giovanni Ferrero, executive chairman of the Ferrero Group, said, “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.”

Lapo Civiletti, Ferrero Group’s chief executive officer, added that the company believe WK Kellogg is a “meaningful addition.”

“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,” Civiletti said.

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.
– Giovanni Ferrero, executive chairman, Ferrero Group

Gary Pilnick, chairman and chief executive officer of WK Kellogg, said he feels the 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,” he said. “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.”

Navigating change

Food Dive noted that WK Kellogg has faced several challenges during its stint as a standalone company, such as a continued slowdown in cereal consumption amid a pullback in consumer spending. It’s also the focus of the U.S. Food and Drug Administration’s push to encourage food companies to remove artificial colors from products.

Meanwhile, Kellanova, the snack-heavy business created in the Kellogg Co.’s split, is being pursued by Mars Inc. as part of a $35.9 billion takeover.

Kellanova is home to banners such as Town House, Rice Krispies Treats, Pringles, Cheez-It, Pop-Tarts, NutriGrain, Eggo and MorningStar Farms. Mars believes Kellanova’s lineup complements its existing snacking platform, which includes Snickers, M&M’s, Twix, Dove, Extra, Kind and Nature’s Bakery.

The acquisition would mark the largest in the industry since Mars shelled out $23 billion for Wrigley in 2008.

Mars has its headquarters in McLean, Va. However, the company has longstanding ties to New Jersey, where it operates facilities in Newark and Hackettstown.