Ferrero to acquire WK Kellogg for US$3bn

Ferrero is doubling down on its North American ambitions, announcing a US$3.1 billion deal to acquire WK Kellogg Co, the maker of breakfast cereals such as Frosted Flakes, Froot Loops and Special K.

The deal, priced at US$23 per share in cash, will see Ferrero take over WK Kellogg Co’s manufacturing, marketing and distribution across the United States, Canada and the Caribbean. It also marks Ferrero’s latest push to broaden its portfolio beyond confectionery into more consumption occasions and categories.

In a statement, Ferrero said the move builds on its strategy of acquiring and growing iconic brands in North America. The Italian confectionery giant and its affiliated companies currently employ more than 14,000 people across 22 plants and 11 offices in the region.

Don't miss: Kellogg splits into 3 businesses, shifts focus to snacks

Its regional portfolio includes household names such as Nutella, Kinder, Tic Tac and Ferrero Rocher, alongside American staples such as Butterfinger, Keebler and Famous Amos. The group has also snapped up brands such as Jelly Belly, NERDS, Trolli, and frozen treats including Blue Bunny and Halo Top.

Ferrero said it plans to invest in WK Kellogg Co’s brands and grow their relevance among modern consumers. Beyond its flagship cereals, the acquisition includes health-forward labels such as Kashi and Bear Naked.

Ferrero also confirmed that Battle Creek, Michigan, the original home of Kellogg’s, will remain a core hub and serve as its North America cereal headquarters.

"I am thrilled to welcome WK Kellogg Co to the Ferrero Group. This is more than just an acquisition, it represents the coming together of two companies, each with a proud legacy and generations of loyal consumers," said Giovanni Ferrero, executive chairman of the Ferrero Group.

He added, “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 US. Today's news is a key milestone in that journey, giving us confidence in the opportunities ahead."

Echoing similar sentiments, Lapo Civiletti, chief executive officer of the Ferrero Group said, "WK Kellogg Co, a trusted company with beloved brands, represents a meaningful addition to the Ferrero Group. Enhancing our portfolio with these complementary household brands marks an important step towards expanding Ferrero’s presence across more consumption occasions and reinforces our commitment to delivering value to consumers in North America."

In tandem, Gary Pilnick, chairman and chief executive officer of WK Kellogg Co. said, "We believe this proposed transaction maximizes value for our shareowners and enables WK Kellogg Co to write the next chapter of our company’s storied legacy. Joining Ferrero will provide WK Kellogg Co with greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market."

He added, "As a family-owned private company with values in line with our founder W.K. Kellogg, Ferrero provides a great home for our people and has a track record of supporting the communities in which it operates. We look forward to collaborating with their team to deliver on the great promise of cereal, explore opportunities beyond cereal, and help us bring our best to consumers every day." 

Founded in 1946, Ferrero has grown into one of the world's largest chocolate manufacturers with iconic brands including Ferrero Rocher, Nutella, Kinder Chocolate, and Tic Tac. 

In recent years, Ferrero has acquired Wells Enterprises, known for its Blue Bunny and other ice cream brands, and completed a US$2.8 billion deal to buy Nestlé's chocolate business in US. Ferrero currently operates 15 plants and warehouses across the US, Canada, and the Caribbean, employing over 5,100 individuals, according to its official website. 

Meanwhile, WK Kellogg is the owner of popular cereal brands such as Corn Flakes, Frosted Flakes, and Froot Loops. It was established in October 2023 following Kellogg's division into WK Kellogg and Kellanova (K), the latter of which manages snack brands such as Pringles and Pop-Tarts.

At that time, Kellogg said that as independent companies, all three businesses would better focus on their strategic priorities, align financial targets with their markets, and enhance operational flexibility. This would allow for more effective resource allocation, improved growth prospects, and the development of unique corporate cultures based on Kellogg's values, providing rewarding career paths for employees.

Related articles:
Ferrero Rocher Christmas tree goes up in flames over the weekend
Kellogg's hands SEA creative account to Ogilvy Singapore
Design Orchard unveils 'fire deals' following Ferrero Rocher burning Christmas tree incident