Italian confectionery giant Ferrero Group has announced plans to acquire WK Kellogg Co. for approximately $3.1 billion, marking a significant expansion into the North American breakfast foods market. The deal, which includes a cash offer of $23 per share, represents a 31% premium over WK Kellogg’s closing stock price prior to the announcement.
The acquisition encompasses WK Kellogg’s six manufacturing plants and its marketing and distribution operations across the United States, Canada, and the Caribbean. This move allows Ferrero to diversify beyond its traditional confectionery offerings, such as Nutella and Ferrero Rocher, and establish a foothold in the breakfast cereal sector.
WK Kellogg, known for iconic cereal brands like Corn Flakes, Froot Loops, and Rice Krispies, was formed in 2023 following the spin-off of Kellogg Company’s North American cereal business. The remaining global snack brands were restructured under the name Kellanova, which was subsequently acquired by Mars Inc. in a deal valued at nearly $36 billion.
Ferrero’s Executive Chairman, Giovanni Ferrero, emphasized the strategic nature of the acquisition, stating, “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.”
The acquisition is expected to close in the second half of 2025, pending shareholder approval. Upon completion, WK Kellogg will become a subsidiary of Ferrero, and its stock will no longer be traded on the New York Stock Exchange.
This deal aligns with Ferrero’s ongoing strategy to expand its presence in North America. In recent years, the company has acquired Nestlé’s U.S. candy brands and Wells Enterprises, the maker of Blue Bunny and Halo Top ice cream.
WK Kellogg has faced challenges in recent years, including declining cereal sales and changing consumer preferences toward healthier breakfast options. Despite these challenges, the company’s strong brand portfolio and established distribution network make it an attractive acquisition target for Ferrero.
Analysts suggest that Ferrero’s acquisition of WK Kellogg could lead to synergies in distribution and marketing, as well as opportunities for innovation in the breakfast foods category. The move also positions Ferrero to better compete in the North American market, where it has been steadily increasing its footprint.
The acquisition reflects a broader trend of consolidation in the food industry, as companies seek to diversify their product offerings and adapt to evolving consumer preferences. With this deal, Ferrero takes a significant step toward becoming a more diversified global food company.
