Italian confectioner Ferrero, known for brands like Nutella and Kinder, said Thursday it would acquire the century-old U.S. cereal company WK Kellogg in a deal valued at approximately $3.1 billion.
The Ferrero Group said it will pay $23 for each Kellogg share. The transaction includes the manufacturing, marketing and distribution of WK Kellogg Co.’s portfolio of breakfast cereals across the U.S., Canada and the Caribbean.
WK Kellogg's shares were up 30% in premarket trading on Thursday on reports of the acquisition that was later confirmed.
Kellogg, which was founded in Battle Creek, Michigan, in 1906, makes Fruit Loops, Special K, Frosted Flakes and Rice Krispies.
The current company was formed in 2023, when Kellogg's snack brands like Cheez-Its and Pringles were spun into a separate company called Kellanova. M&M's maker Mars Inc. announced last year that it planned to buy Kellanova in a deal worth nearly $30 billion.
Ferrero Group, which was founded in Italy in 1946, has been trying to expand its U.S. footprint. In 2018, it bought Nestle's U.S. candy brands, including Butterfinger, Nerds and SweeTarts. And in 2022, it bought Wells Enterprises, the maker of ice cream brands like Blue Bunny and Halo Top.
The deal, which still needs approval from Kellogg shareholders, is expected to close in the second half of the year. Once the transaction is complete, Kellogg’s stock will no longer trade on the New York Stock Exchange and the company will become a Ferrero subsidiary.
