Italian confectionery giant Ferrero Group announced on Thursday that it will acquire WK Kellogg Co. in a $3.1 billion (£2.4 billion) deal, expanding its global footprint and strengthening its presence in the North American market.
WK Kellogg Co., headquartered in Battle Creek, Michigan, is the home of iconic breakfast cereals such as Corn Flakes, Froot Loops, Rice Krispies, and Special K. Ferrero, renowned for its Nutella spread and Ferrero Rocher chocolates, will take over manufacturing, marketing, and distribution of Kellogg’s cereal brands across the United States, Canada, and the Caribbean.
Under the terms of the agreement, Ferrero will pay $23 per WK share. Shares of WK Kellogg surged over 35% in early trading, reaching $22.86 following the announcement.
The acquisition is part of Ferrero’s broader strategy to diversify and expand in key international markets. Founded in Italy in 1946, Ferrero has made several strategic moves in recent years, including the purchase of Nestlé’s U.S. candy portfolio in 2018, home to brands like Butterfinger, Nerds, and SweeTarts, and the acquisition of Wells Enterprises, which owns Blue Bunny and Halo Top ice cream brands, in 2022.
“This transaction will provide WK Kellogg Co. with greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market,” said CEO Gary Pilnick in a statement.
The deal also offers financial relief for the breakfast, which reported $663 million in net sales for the first quarter of 2025, a 6.2% year-on-year decline. The company has signalled a shift in focus toward health and nutrition in response to evolving consumer trends.
Kellogg spins off snack division
In 2023, Kellogg spun off its snack division, including popular brands such as Cheez-Its and Pringles, into a separate entity named Kellanova. That company is also set for a major transition, as M&M’s manufacturer Mars, announced plans last year to acquire Kellanova in a deal reportedly worth close to $30 billion.
Industry experts say Ferrero’s acquisition reflects an ongoing consolidation trend in the global food and beverage sector. “This is a clear signal that large players are pursuing scale and broader category presence to stay competitive amid shifting consumer tastes,” said Brad Haller, senior partner at consultancy firm West Monroe.
The WK Kellogg acquisition is expected to be finalised in the second half of 2025. Once completed, WK Kellogg’s shares will be delisted from the New York Stock Exchange.
