The Italian food giant already operates in USA with the brands Nutella, Kinder, Tic Tac, Ferrero Rocher, Butterfinger, Keebler Famous Amos
Gruppo Ferrero, the Italian diversified food group that owns iconic brands such as Nutella and Kinder, said it will invest 3.1 billion US Dollars, 23 US Dollars per share in cash for acquiring and delisting cereals producer WK Kellogg from NYSE and close the deal in 2H25 (press release).
The target’s board of directors gave unanimous approval ahead of shareholders and usual legal authorizations. Lazard, BofA Securities and Davis Polk & Wardwell assisted Ferrero. WK Kellogg retained Goldman Sachs, Morgan Stanley and Kirkland & Ellis.
Ferrero will acquire the production, sale and distribution units of the target in USA, Canada and the Carrbean. The deal is consistent with the Italian company’s strategy for investing and supporting iconic brands.
In October 2023, WK Kellogg spun off from Battle Creek (Michigan) Kellanova (fka Kellogg Company), a company that Will Keith Kellogg founded in 1894. The firm owns the brands Frosted Flakes, Froot Loops, Rice Krispies, Special K, Raisin Bran, Kashi, Frosted Mini Wheats, and Bear Naked. Ferrero and its subsidiaries are active in North America with more than 14000 employees, 22 plants, 11 offices, and brands such as Nutella, Kinder, Tic Tac, Ferrero Rocher, Butterfinger, Keebler,Famous Amos, Jelly Belly, Nerds, Trolli, Blue Bunny, Bomb Pop, and Halo Top.
Gary Pilnick, the chairman and ceo of WK Kellogg Co, said: “We believe the proposed transaction maximises value for our shareholders and enables WK Kellogg to write the next chapter in our company’s historic legacy. Since becoming an independently listed company in October 2023, we made excellent progress on our path to profitability. Joining Ferrero will provide WK Kellogg Co with more resources and greater flexibility to grow our iconic brands in a competitive and dynamic marketplace.”
WK Kellogg said that in 1Q25 it posted a turnover of 610 – 615 million with an adjusted ebitda of 43 – 48 million. In 2024, the company generated sales of 2.70 billion with an adjusted ebitda of 275 million (2024 results).
Lapo Civiletti, the ceo of Ferrero, added: “WK Kellogg Co is a company with successful brands, which will add value to the Ferrero Group. The enrichment of our portfolio with these complementary brands marks an important step in the expansion of our group to more consumers in North America.”
In 2023, Ferrero acquired Fresystem, an Italian producer of frozen food. In 2024, the Nutella’s owner generated sales of 18.4 billion euros (press release).
