Deal strengthens Ferrero’s U.S. presence as sugary cereal giant WK Kellogg joins candy empire
Ferrero, the Italian confectionery giant known for Nutella and Ferrero Rocher, announced Thursday it will acquire cereal maker WK Kellogg (KLG) in a $3.1 billion deal, deepening its presence in the U.S. packaged food market.
Shares of WK Kellogg surged 30% in premarket trading following the announcement. The agreed purchase price of $23 per share represents a 31% premium over Wednesday’s closing price. The deal is expected to close in the second half of 2025, pending shareholder and regulatory approval.
WK Kellogg, which owns iconic cereal brands like Froot Loops and Frosted Flakes, was spun off from Kellogg in 2023 as the original parent company—now known as Kellanova—shifted focus to its growing snack portfolio. The divestiture came amid changing consumer habits, as U.S. shoppers increasingly opt for healthier breakfast choices and budget-friendly private label brands.
Ferrero’s acquisition signals continued consolidation in the packaged foods industry and a renewed push to modernize legacy brands. The move also builds on Ferrero’s rapid North American expansion, following previous acquisitions of Nestlé’s U.S. candy business and ice cream brand Halo Top.
“Today’s news is a key milestone in our journey,” said Ferrero executive chair Giovanni Ferrero. “It gives us confidence in the opportunities ahead as we continue growing our U.S. footprint.”
WK Kellogg is scheduled to report quarterly results on August 5, projecting net sales of $610 million to $615 million and adjusted EBITDA between $43 million and $48 million. The company will not hold an earnings call due to the pending acquisition.
With the cereal market in flux, Ferrero is betting that brand strength and operational scale can breathe new life into WK Kellogg’s breakfast staples.
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