Ferrero to Acquire WK Kellogg Co for $3.1B

The Ferrero Group has announced plans to acquire WK Kellogg Co for $3.1 billion. 

The acquisition includes the manufacturing, marketing and distribution of WK Kellogg Co's portfolio of breakfast cereals across the United States, Canada and the Caribbean. 

Ferrero says the transaction represents another milestone in its strategy to acquire, invest in and grow brands as it enhances its overall footprint and product offerings in North America. As a result of this growth, in North America Ferrero and its affiliated companies total more than 14,000 employees across 22 plants and 11 offices. Ferrero’s North America portfolio includes Nutella, Kinder, Tic Tac, and Ferrero Rocher, as well as 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 treat brands such as Blue Bunny, Bomb Pop, and Halo Top.

Drawing upon its previous acquisitions in the United States, Ferrero plans to invest in and grow WK Kellogg Co's brands including Frosted Flakes, Froot Loops, Frosted Mini Wheats, Special K, Rice Krispies, Raisin Bran, Kashi, Bear Naked and more. Kellogg spun off its North American cereal business in 2023, forming WK Kellogg Co.

"I am thrilled to welcome WK Kellogg Co to the Ferrero Group,” says Giovanni Ferrero, executive chairman of 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."

After the transaction closes, Battle Creek, Michigan will remain a core location for the company and will be Ferrero's headquarters for North America cereal.

"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," says Gary Pilnick, chairman and CEO of WK Kellogg Co. "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."

Under the agreement, Ferrero will acquire all outstanding equity of WK Kellogg Co for $23 per share in cash. Upon completion of the transaction, shares of WK Kellogg Co's common stock will no longer trade on the New York Stock Exchange, and the company will become a wholly owned subsidiary of Ferrero.

The agreement has been unanimously approved by WK Kellogg Co’s Board of Directors. The transaction, subject to approval by WK Kellogg Co shareowners, regulatory approvals and other customary closing conditions, is expected to close in the second half of 2025.

The W.K. Kellogg Foundation Trust and the Gund Family have entered into agreements in which they have committed to vote shares representing 21.7% of WK Kellogg Co's common stock, as of July 7, in favor of the transaction.

In connection with the announcement, WK Kellogg Co is providing preliminary second quarter 2025 net sales and Adjusted EBITDA results. For the second quarter ended June 28, the company expects net sales to be in the range of $610 million to $615 million and adjusted EBITDA to be in the range of $43 million to $48 million.