Ferrero has agreed to acquire WK Kellogg Co, the North American cereal business spun off from Kellogg, in a $3.1bn all-cash deal that underscores the Italian confectionery group’s growing ambitions in the US packaged food market.
The Alba-based maker of Nutella and Ferrero Rocher will pay $23 per share for the business, in a deal unanimously approved by Kellogg’s board. The transaction includes WK Kellogg’s manufacturing, marketing, and distribution operations across the US, Canada, and the Caribbean.
The deal expands Ferrero’s footprint in the competitive breakfast foods segment, giving it control of a portfolio of well-established brands including Special K, Frosted Flakes, Rice Krispies, and Froot Loops — staples of American households for decades.
WK Kellogg reported 2024 net income of $72mn on revenues of $2.71bn, with an operating margin of 2.62%. Ferrero generates more than €18bn in annual global revenues.
In a statement, Ferrero described the acquisition as part of its broader strategic plan to invest in “iconic brands that strengthen our presence and product offering in North America”.
“This is more than a transaction — it’s the coming together of two companies with deep roots and loyal consumer bases,” said Giovanni Ferrero, executive chairman of the group.
The deal, expected to close in the second half of 2025, will result in the delisting of WK Kellogg from the New York Stock Exchange. Upon completion, the company will become a wholly owned subsidiary of Ferrero.
The move follows Ferrero’s 2018 acquisition of Kellogg’s cookie, fruit snack, and ice cream cone businesses for $1.3bn — a deal that brought Keebler, Famous Amos, Mother’s, and Murray cookies into its portfolio.
KELLOGG: A LEGACY BRAND BORN IN BATTLE CREEK
Kellogg was founded in 1906 in Battle Creek, Michigan, by Will Keith Kellogg, the inventor of corn flakes. The company was a pioneer in the mass production of ready-to-eat breakfast cereals and played a formative role in shaping American food culture.
In 2023, Kellogg split into two entities: WK Kellogg, focused on cereals in North America, and Kellanova, which houses the snack and international operations. WK Kellogg also released preliminary second-quarter results on the day of the deal announcement. For the period ending June 28, the company expects net sales between $610mn and $615mn, and adjusted EBITDA of $43mn to $48mn.
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