Confectionery company Ferrero is reportedly nearing a deal to acquire cereal maker WK Kellogg, with WK Kellogg shares surging by 56%.
Ferrero hopes to finalise its purchase of WK Kellogg for US$3 billion this week, according to the Wall Street Journal. Ferrero’s products include Nutella and Ferrero Rocher, while WK Kellogg’s cereals include Corn Flakes and Froot Loops.
WK Kellogg’s net sales dropped by 6.2% year-over-year in 2025’s first quarter, with a 45.5% decline in income and $570 million in net debt. It revised its full-year guidance downward in its first-quarter earnings report, projecting a slump of 2-3% in net sales growth.
“Despite the lower-than-expected first quarter performance which resulted in revising our 2025 outlook, we continue to make great progress on our strategic priorities, including the supply chain modernisation initiative,” said WK Kellogg CEO Gary Pilnick at the time.
WK Kellogg plans to expand further into healthy cereal categories as consumers focus on nutrition, said Pilnick.
The company was spun off from Kellogg’s in 2023 to manage the brand’s United States 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 ice cream company Wells Enterprises in 2022.
WK Kellogg’s share price jumped to US$27.35 by in after-hours trading following the report, after closing at $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.
