Confectionary company the Ferrero Group has acquired cereal manufacturer WK Kellogg Co for the sum of $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 labelled it as part of its plan for strategic growth, expanding the company’s reach.
Currently, Ferrero boasts 14,000 employees across 22 plants and 11 offices, with brands including Nutella, Kinder, Tic Tac and Ferrero Rocher. It said it plans to invest in and grow WK Kellogg Co’s brands, which include Kellogg’s Frosted Flakes, Kellogg’s Special K, Kellogg’s Rice Krispies and Kellogg’s Raisin Bran to name a few.
The acquisition comes after WK Kellogg Co split from Kellogg’s on 2nd October 2023.
Giovanni Ferrero, executive chairman of the Ferrero Group, stated: “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 maximises 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.”
“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.”
