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2mo ago

Ferrero to Acquire WK Kellogg in $3.1 Billion Deal

Pending final approvals, the acquisition will see WK Kellogg delisted from the NYSE.

FILE - This is a shelf of Kellogg's Frosted Flakes cereal at a market in Homestead, Pa., on Monday, Feb. 24, 2025. (AP Photo/Gene J. Puskar, File)
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A box of Ferrero Rocher is displayed on a shelf in a supermarket in Sarajevo, Bosnia and Herzegovina October 29, 2024. REUTERS/Dado Ruvic/File Photo
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Overview

  • Ferrero will pay $23 per share in cash, representing a 31% premium over WK Kellogg’s last closing price, to complete the $3.1 billion takeover.
  • As Ferrero’s largest recent purchase, the deal brings iconic cereal brands such as Froot Loops and Frosted Flakes into its North American portfolio.
  • Closing is scheduled for the second half of 2025, subject to shareholder and regulatory sign-off, after which WK Kellogg will cease public trading.
  • WK Kellogg has struggled with weakening demand due to high inflation and shifting consumer preferences toward healthier breakfast options.
  • The agreement highlights growing consolidation in the packaged food sector as companies seek scale to navigate market pressures.