Ferrero To Acquire WK Kellogg Co for $3.1 Billion

Luxembourg’s Ferrero Group will become one of the largest and broadest food processors in the U.S. with its $3.1 billion deal to acquire iconic U.S. cereal company WK Kellogg Co.

The two sides this morning (July 10) announced a definitive agreement with Ferrero – maker of Nutella and more recently acquirer of Nestle’s U.S. candy business and ice cream maker Wells Enterprises/Blue Bunny – paying $23 per share in cash. Kellogg’s stock had been hovering between $15-18 per share.

The acquisition includes the manufacturing, marketing and distribution of WK Kellogg Co's portfolio of breakfast cereals across U.S., Canada and the Caribbean. International cereals went with snack-heavy Kellanova when the former Kellogg Co. split in two in October 2023.

Kellanova didn’t last long either; it’s in the midst of being acquired by Mars Inc., which has been approved by the U.S. Federal Trade Commission but is being held up by European antitrust regulators.

Since the split, WK Kellogg’s sales and net income have dipped – from $2.763 billion sales and $110 million net in 2023 to $2.708 billion sales and $72 million net in 2024. In its first quarter of this year, sales declined another 6.2% and net income another 45.5%.

For today's announcement, WK Kellogg Co provided preliminary second quarter 2025 net sales and adjusted earnings. Both were down: The company expects sales of $610-615 million and adjusted EBITDA of $43-48 million.

By our count, Ferrero had 2023 North American sales of $3.7 billion and global sales of $13.5 billion.

“This transaction represents another chapter in Ferrero's proven strategy to acquire, invest in, and grow iconic brands as it continues to enhance its overall footprint and product offerings in North America,” the joint announcement said. “As a result of this strong growth, in North America Ferrero and its affiliated companies currently count more than 14,000 employees across 22 plants and 11 offices.”

Ferrero’s North American portfolio includes self-developed brands Nutella, Kinder, Tic Tac and Ferrero Rocher, as well as acquired brands Butterfinger, Keebler, Famous Amos, Jelly Belly, Nerds, Trolli, Blue Bunny, Bomb Pop and Halo Top.

“Drawing upon its previous successful acquisitions in the United States, Ferrero plans to invest in and grow WK Kellogg Co's iconic brands ... Ferrero, which also brings over 75 years of heritage, has long admired WK Kellogg Co's legacy and is proud to be entrusted with carrying these iconic American brands forward.”

Kellogg traces its history back to 1894, when founder W.K. Kellogg created Corn Flakes. Ferrero said Battle Creek, Mich., 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," said Gary Pilnick, chairman and CEO of Kellogg. "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,” Pilnick continued. “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.”

The agreement has been unanimously approved by Kellogg’s board of directors, but still needs approval by WK Kellogg Co shareowners, regulatory approvals and other customary closing conditions and is currently expected to close in the second half of this year.

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