Nutella maker Ferrero buys Frosted Flakes maker WK Kellogg for $3 billion

Ferrero is agreeing to buy Kellogg for $23.00 per share in cash, making up the $3 billion value for Kellogg's manufacturing, marketing, and distribution. Once the deal is complete, Kellogg’s common stock will no longer trade on the New York Stock Exchange. The deal is expected to go through in the second half of this year, the release said. 

Kellogg’s shares were up 30.4% early Thursday, Reuters reports. 

Ferrero said this acquisition is part of its larger plan to expand its “reach across more consumption occasions with renowned beloved brands and strong consumer relevance.”

Ferrero already owns popular brands such as Nutella, Keebler, Ferrero Rocher, Butterfinger, Kinder, and Tic Tac, among others. With this new deal, it will add to its portfolio Frosted Flakes, Froot Loops, Frosted Mini Wheats, Special K, Rice Krispies, Raisin Bran, and Bear Naked, among others, according to the release. 

The company said that it plans to “invest in and grow WK Kellogg Co’s iconic brands” by tapping into its other “successful acquisitions” in the U.S. 

“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 Ferrero executive chairman Giovanni Ferrero in the release. 

“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 WK Kellogg CEO Gary Pilnick in the release. “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.”

Once the deal goes through, Battle Creek, Michigan — Kellogg’s current headquarters — will be Ferrero’s headquarters for cereal in North America, the release said.