Ferrero to Acquire WK Kellogg for $3.1 Billion

Italian confectioner Ferrero has agreed to acquire U.S. cereal maker WK Kellogg for $3.1 billion, paying $23 per share. The deal gives Ferrero control over the manufacturing, marketing, and distribution of WK Kellogg’s cereal brands—including Frosted Flakes, Froot Loops, and Rice Krispies—in the U.S., Canada, and the Caribbean. WK Kellogg’s headquarters in Battle Creek, Michigan, will remain central to Ferrero’s North American cereal operations, and Ferrero has pledged to invest in these brands. The acquisition has unanimous approval from WK Kellogg’s board and major shareholders, including the W.K. Kellogg Foundation Trust and the Gund family. Subject to shareholder and regulatory approval, the deal is expected to close in the second half of the year, after which WK Kellogg will become a Ferrero subsidiary and be delisted from the New York Stock Exchange. This marks a major step in Ferrero’s North American expansion.