- M&A
- July 10, 2025
- 3 minutes read
Italy’s Ferrero To Buy U.S. Cereal Giant Kellogg For $3B
The Ferrero Group, an Italian privately-held chocolate products giant, has struck a deal to acquire WK Kellogg (NYSE: KLG), an…
The Ferrero Group, an Italian privately-held chocolate products giant, has struck a deal to acquire WK Kellogg (NYSE: KLG), an American cereal giant. Ferrero will pay $23 in cash per share, valuing WK Kellogg at roughly $2bn. It’ll also absorb WK Kellogg’s existing liabilities, pushing the total enterprise value to $3.1bn.
- Ferrero’s offer represents a 31% premium to WK Kellogg’s closing share price on Wednesday, the day before the deal was announced.
WK Kellogg spun off from a larger food products conglomerate known as Kellogg’s in 2023. Kellogg’s was best known for its snack brands like Pringles, Frosties, and Coco Pops. After spinning off WK Kellogg, which housed popular cereal brands like Froot Loops and Frosted Flakes, Kellogg’s renamed itself as Kellanova (NYSE: K).
The spin-off essentially separated Kellogg’s North American cereal business from its other business lines. WK Kellogg emerged as a publicly traded cereal giant after the spin-off. However, it has struggled with weakening demand due to higher inflation and healthier eating trends among its consumer base. The company’s share price staggered and growth slowed, making it a prime takeover target.
Ferrero, the acquirer, owns popular chocolate product brands, including Nutella, Kinder, and Ferrero Rocher. With $19bn in revenue in its last fiscal year, Ferrero is one of the world’s largest packaged food companies. Acquiring WK Kellogg will strengthen its foothold in the North American market, where it has been seeking to expand in recent years.
- Ferrero Group is controlled by the eponymous Ferrero family. The group’s success has made them one of the world’s wealthiest families, with a net worth estimated at over $50bn, according to the Bloomberg Billionaires Index.
In an intriguing parallel, Kellanova, which WK Kellogg separated from, agreed last year to be acquired by Mars Inc., a family-controlled food conglomerate. U.S.-based Mars offered $36bn in cash, although the deal hasn’t yet closed. Mars is owned by the eponymous Mars family.
