Candy giant Ferrero announces agreement to buy cereal maker WK Kellogg Co
The Ferrero Group and WK Kellogg Co announced that they have entered into a definitive agreement under which Ferrero has agreed to acquire WK Kellogg Co, for US$23.00 per share in cash, representing a total enterprise value of US$3.1 billion.
The acquisition, which includes the manufacturing, marketing and distribution of WK Kellogg Co's portfolio of breakfast cereals across the United States, Canada and the Caribbean, is part of Ferrero's plan for strategic growth and expands the company's reach across more consumption occasions with renowned beloved brands and strong consumer relevance.
Drawing upon its previous successful acquisitions in the United States, Ferrero plans to invest in and grow WK Kellogg Co's brands including Kellogg's Frosted Flakes, Kellogg's Froot Loops, Kellogg's Frosted Mini Wheats, Kellogg's Special K, Kellogg's Rice Krispies, Kellogg's Raisin Bran, Kashi,Bear Naked, and others in the Kellogg portfolio.
"I am thrilled to welcome WK Kellogg Co to the Ferrero Group. This is more than just an acquisition—it represents the coming together of two companies, each with a proud legacy and generations of loyal consumers," said Giovanni Ferrero, executive chairman of the Ferrero Group. "Over recent years, Ferrero has expanded its presence in North America, bringing together our well-known brands from around the world with local jewels rooted in the U.S. Today's news is a key milestone in that journey, giving us confidence in the opportunities ahead."
"We believe this proposed transaction maximizes value for our shareowners and enables WK Kellogg Co to write the next chapter of our company's storied legacy," said Gary Pilnick, chairman and chief executive officer of WK Kellogg Co. "Since becoming an independent public company in October 2023, we have made excellent progress on our journey to become a more focused and more profitable business – driven by our tremendous people and a winning culture—all while building a strong foundation for future growth. Joining Ferrero will provide WK Kellogg Co with greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market. As a family-owned private company with values in line with our founder W.K. Kellogg, Ferrero provides a great home for our people and has a track record of supporting the communities in which it operates. We look forward to collaborating with their team to deliver on the great promise of cereal, explore opportunities beyond cereal, and help us bring our best to consumers every day."
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Lapo Civiletti, chief executive officer of the Ferrero Group, added, "WK Kellogg Co, a trusted company with beloved brands, represents a meaningful addition to the Ferrero Group. Enhancing our portfolio with these complementary household brands marks an important step towards expanding Ferrero's presence across more consumption occasions and reinforces our commitment to delivering value to consumers in North America."
The agreement has been unanimously approved by the Board of Directors of WK Kellogg Co. The transaction is subject to approval by WK Kellogg Co shareowners, regulatory approvals and other customary closing conditions and is currently expected to close in the second half of 2025.
WK Kellogg Co announces preliminary Q2 2025 results
In connection with today's announcement, WK Kellogg Co is providing preliminary second quarter 2025 net sales and Adjusted EBITDA results. For the second quarter ended June 28, 2025, the company expects net sales to be in the range of US$610 million to US$615 million and adjusted EBITDA to be in the range of US$43 million to US$48 million.
WK Kellogg Co will issue its full second quarter 2025 results and related financial information on August 5, 2025.
