Portugal Colonial - Snap, crackle and pay: Ferrero to buy WK Kellogg for $3.1 bn

Ferrero, whose products include Nutella chocolate spread and Ferrero Rocher chocolate treats, will pay $23 per share in cash for WK Kellogg, which is known for Rice Krispies and Kellogg's Frosted Flakes, among other offerings.

The transaction is expected to close in the second half of 2025, said a joint press release. On completion of the transaction, WK Kellogg will be a wholly owned subsidiary of Ferrero.

The pricing of Kellogg represents a 31 percent premium to the company's closing price on Wednesday.

Ferrero Chief Executive Giovanni Ferrero described the merger as "the coming together of two companies" with "generations of loyal consumers."

"Over recent years, Ferrero has expanded its presence in North America," said Giovanni Ferrero. "Today's news is a key milestone in that journey, giving us confidence in the opportunities ahead."  

Ferrero, whose origins stem from its founding in Alba, Italy in 1946, has struck a number of deals in recent years to expand in North America, including the 2018 purchase of Nestle's US confectionary business for $2.8 billion in cash.

Prior to the Kellogg deal, Ferrero had more than 14,000 employes across 22 plants and 11 offices in North America, according to the press release. Its US brands include Keebler, Famous Amos and Tic Tac.

WK Kellogg is the cereal arm of Michigan-based Kellogg, which split itself up a couple of years ago, with its Kellanova snack brand being sold to Mars in August 2024 for around $36 billion.

"We believe this proposed transaction maximizes value for our share owners and enables WK Kellogg Co to write the next chapter of our company's storied legacy," said Gary Pilnick, chief executive of WK Kellogg.

"Joining Ferrero will provide WK Kellogg Co with greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market."

Kellogg dates its origins to 1894 when founder WK Kellogg invented the Corn Flakes cereal, the first of a series of offerings that later expanded to Raisin Bran and Froot Loops.

Shares of WK Kellogg surged 30.9 percent in mid-morning trading.

C.Cassis--PC