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4d ago

Ferrero to Buy WK Kellogg for $3.1 Billion

The deal awaits shareholder and regulatory approval before broadening Ferrero’s presence in North American breakfast cereals.

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 Group agreed to acquire WK Kellogg for $3.1 billion in cash at $23 per share, representing a 31% premium over the pre-deal closing price.
  • WK Kellogg’s board has unanimously approved the transaction and shareholder and regulatory clearance is required to finalize the purchase.
  • The acquisition is expected to close in the second half of 2025, at which point WK Kellogg will become a wholly owned subsidiary of Ferrero.
  • Ferrero plans to invest in WK Kellogg’s cereal business and use its U.S. distribution network to drive growth across iconic brands.
  • WK Kellogg shares remain trading close to the offer price following an initial 30% rally after the deal was announced, signaling investor confidence in its completion.