Confectionery company Ferrero will buy cereal maker WK Kellogg, with WK Kellogg shares trading 31% higher after the news.
Ferrero will buy WK Kellogg for US$23 per share in cash, with a total value of $3.1 billion. Ferrero’s products include Nutella and Ferrero Rocher, while WK Kellogg’s cereals include Corn Flakes and Froot Loops.
“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,” said Ferrero CEO Giovanni Ferrero.
The acquisition includes WK Kellogg's cereal brands in the United States, Canada, and the Caribbean. WK Kellogg will become a wholly owned subsidiary of Ferrero, and will cease trading on the New York Stock Exchange.
WK Kellogg’s net sales dropped 6.2% year-over-year in 2025’s first quarter to US$663 million, with a 45.5% decline in income. It revised its full-year guidance downward in its first-quarter earnings report, projecting a slump of 2-3% in net sales growth.
The company expects net sales of US$610-615 million in the second quarter, according to its preliminary results. It will release its second quarter earnings report on 5 August.
It plans to expand further into healthy cereal categories as consumers focus on nutrition, said WK Kellogg CEO Gary Pilnick in May.
WK Kellogg was spun off from Kellogg’s in 2023 to manage the brand’s U.S. businesses, with its international operations being rebranded as Kellanova.
Ferrero previously purchased Kellogg's' cookie, fruit snack, and ice cream cone businesses in 2019. It has also significantly expanded its operations in the United States in recent years, acquiring Nestlé’s American confectionery business in 2018 and an ice cream company Wells Enterprises in 2022.
WK Kellogg’s (NYSE: KLG) share price closed at US$22.86, surging from its previous close of $17.50. Its share price has declined by 1.69% across 2025 to date.
WK Kellogg’s market capitalisation is US$1.51 billion. Ferrero is privately held, and reported a consolidated turnover of EU€18.4 billion in the 2023-2024 financial year.
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