Ferrero strikes: $3.1 billion for WK Kellogg!

Ferrero strikes: $3.1 billion for WK Kellogg!

Ferrero, the renowned Italian family-owned company, has announced the acquisition of WK Kellogg Co for $3.1 billion. The purchase, offered for $23 per share, represents a 31 percent premium to the company's closing price. The acquisition includes the production, marketing and distribution of WK Kellogg Co's breakfast cereals in the United States, Canada and the Caribbean. This was World reported.

WK Kellogg itself was created just two years ago from the split of the original Kellogg Group, with the North American breakfast cereal business being transferred to the new company. The rest of the company was grouped under the name Kellanova, which was sold to Mars last year for $36 billion, a deal approved by U.S. antitrust regulators. However, these changes pose challenges for both brands as they suffer from the US government's uncertain tariff policies.

Strategic expansion

Ferrero's CEO, Giovanni Ferrero, emphasizes the importance of merging two companies with a long tradition. The Italian company was founded in Alba in 1946 and has since developed into a global player active in over 170 countries. Ferrero has been operating in the USA since 1969 and employs 14,000 of its 61,000 employees worldwide there. Popular products in North America include Nutella, Kinder chocolate and Tic Tac.

The acquisition of WK Kellogg aims to expand Ferrero's product portfolio and improve its growth opportunities in North America. Brands that fall under WK Kellogg include well-known products such as “Froot Loops,” “Frosted Flakes,” and “Rice Krispies.” Ferrero plans to invest in existing brands and increase their market reach.

Financial performance and shareholder approval

WK Kellogg recently released preliminary sales figures for the second quarter of 2025, which are expected to be between $610 million and $615 million, with adjusted EBITDA of $43 million to $48 million. The full report will be published on August 5, 2025. Additionally, the acquisition was unanimously approved by WK Kellogg's Board of Directors and is now subject to shareholder approval and regulatory approvals. The W.K. Kellogg Foundation Trust and the Gund Family have already signaled they will vote 21.7 percent of the company's shares in support of the deal.

The transaction is expected to close in the second half of 2025. With this acquisition, Ferrero builds a bridge between traditional breakfast brands and its already diverse product range, putting the company in a strong position in the North American snack and breakfast market. This acquisition is more than just a financial deal; it represents a strategic realignment and a long-term perspective in the mass market for food.