BATTLE CREEK, Mich. (WOOD) — Italian chocolate maker Ferrero is shopping for WK Kellogg Co. in a possible deal price greater than $3 billion.
The sale is predicted to be finalized earlier than the yr is out, the businesses introduced Thursday.
Ferrero will purchase Kellogg for $23 per share in money for a complete of about $3.1 billion. The deal has been authorized by Kellogg’s board of administrators, although it nonetheless must be authorized by shareholders and regulators.
“WK Kellogg Co is a renowned company, in operation for nearly 120 years, and a leader shaping the future of breakfast. Ferrero, which also brings over 75 years of heritage, has long admired WK Kellogg Co’s legacy and is proud to be entrusted with carrying these iconic American brands forward,” reads a press launch asserting the deal.
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Headquartered in Battle Creek, Michigan, WK Kellogg makes cereals together with Rice Krispies, Frosted Flakes and Froot Loops. It grew to become a standalone firm in 2023, when the Kellogg Firm cut up into two: WK Kellogg, with a deal with North American cereals, and Kellanova, which incorporates snack meals and worldwide cereals.
CNBC reported that shares of WK Kellogg fell about 2% this yr, however they soared following Wednesday’s information of the potential deal.
“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,” WK Kellogg Co. CEO Gary Pilnick stated. “Since turning into an unbiased public firm in October 2023, we now have made wonderful progress on our journey to change into a extra targeted and extra worthwhile enterprise — pushed by our super individuals and a profitable tradition — all whereas constructing a robust basis for future progress.
“Joining Ferrero will provide WK Kellogg Co with greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market,” Pilnick added.
When the deal goes by way of, Ferrero will personal all manufacturing, advertising and distribution of Kellogg merchandise within the U.S., Canada and the Caribbean. The corporate stated it meant to “invest in and grow” huge Kellogg manufacturers like Frosted Flakes, Froot Loops, Frosted Mini Wheats, Particular Okay, Rice Krispies, Raisin Bran, Kashi and Bear Bare.
Ferrero is the world’s third largest chocolate confectionary firm, with merchandise obtainable in additional than 170 international locations, in response to its web site. Its manufacturers embody Nutella, Butterfinger, Kinder, Blue Bunny and Ferrero Rocher.
