Ferrero Plans $3.1B Acquisition of WK Kellogg

The Italian food giant Ferrero is acquiring WK Kellogg, the U.S. cereal company known for brands like Rice Krispies, Froot Loops, and Frosted Flakes, in a $3.1 billion cash deal at $23 per share, representing a 31% premium. This transaction, expected to close in the second half of 2025, will make WK Kellogg a wholly owned subsidiary of Ferrero, significantly expanding Ferrero's North American presence beyond confectionery into the breakfast food market. WK Kellogg, spun off from Kellogg Company in 2023, has faced declining demand amid high inflation and shifting consumer preferences toward healthier options, leading to reformulations of its products to reduce artificial additives. Ferrero's CEO Giovanni Ferrero described the deal as a milestone in the company's North American growth strategy, which includes prior acquisitions such as Nestlé's U.S. confectionery business and Wells Enterprises. The merger brings iconic brands like Nutella, Kinder, Tic Tac, and Blue Bunny together with WK Kellogg's portfolio, allowing Ferrero to leverage its global distribution network to grow these brands in the U.S. and beyond. The acquisition reflects broader trends in the food industry where companies diversify portfolios to address changing consumer demands and cost pressures.