Ferrero Agrees to Buy WK Kellogg for a Value of $3.1 Billion
In a significant move, The Ferrero Group has agreed to acquire WK Kellogg Co. for $23 per share in cash, a deal valued at $3.1 billion. This acquisition will further solidify Ferrero's position as a major player in the global confectionery and packaged foods sectors.
The deal, which is expected to close in the second half of 2025, includes the manufacturing, marketing, and distribution of WK Kellogg's famous cereal portfolio, such as Frosted Flakes, Froot Loops, and Rice Krispies. The headquarters for North American cereal operations of WK Kellogg Co. will remain in Battle Creek.
Ferrero, founded in 1946 in Alba, Piedmont, Italy, began as a small confectionery business that introduced Nutella. Under the leadership of Pietro Ferrero and his grandsons, Pietro Jr. and Giovanni Ferrero, the company has grown significantly and is now the second-largest chocolate and confectionery company worldwide.
This acquisition marks a strategic move for Ferrero, following a series of expansions in recent years. In 2017, Ferrero acquired the Ferrara Candy Company, and in 2018, it purchased Nestlé’s U.S. confectionery business. In 2019, Ferrero acquired Keebler’s cookie business from WK Kellogg Co, marking its entry into the ready-to-eat cereal and cookie segments in North America.
Gary Pilnick, chairman and CEO of WK Kellogg Co., stated that the deal maximizes value for WK Kellogg Co.'s shareowners. Giovanni Ferrero, executive chairman of the Ferrero Group, described the coming together of the two companies as a union of two companies, each with a proud legacy and generations of loyal consumers.
WK Kellogg Co., which can trace its roots to 1894 when it was founded by W.K. Kellogg who invented Corn Flakes, has announced its preliminary second quarter net sales for 2025, which are expected to fall between $610 million to $615 million. The company split into WK Kellogg and Kellanova in 2023.
Ferrero's brands, which also include Ferrero Rocher, Kinder, Tic Tac, Butterfinger, Keebler, Famous Amos, Jelly Bell, NERDS, Trolli, Blue Bunny, Bomb Pop, and Halo Top, are sold in more than 170 countries. In May, the company reported that its net sales decreased 6.2% in the first quarter on a year-over-year (YoY) basis, while net income declined 45.5% YoY.
The acquisition of WK Kellogg Co. is expected to significantly increase Ferrero’s U.S. retail sales and strengthen its packaged foods scale in North America, including cereals and snacks. This move is part of Ferrero's ongoing strategy to expand its product range and leverage a combination of iconic brands to maintain its competitive edge in the global market.
- The acquisition of WK Kellogg Co. by Ferrero will not only solidify its position in the global confectionery and packaged foods sectors but also extend its product range to include cereals, a move aimed at leveraging a combination of iconic brands to maintain its competitive edge in the global market.
- The strategic acquisition of WK Kellogg Co. not only marks a significant step in Ferrero's ongoing expansion strategy but also aligns with the company's broader objective of diversifying its offerings in the food-and-drink sector, including cereals, to cater to various lifestyle preferences and finance growth in the business.
