Today, Ferrero Rocher chocolate maker The Ferrero Group announced its intent to purchase WK Kellogg Co. in a deal worth $3.1 billion. The latter company’s board unanimously approved the transaction, and it is subject to approval by the brand’s shareholders.
The purchase includes the manufacturing, marketing, and distribution of the breakfast cereal brand’s catalog across the U.S., Canada, and the Caribbean, which Ferrero notes is a key part of its strategic growth plan.
“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 Giovanni Ferrero, executive chairman of the Ferrero Group, in a statement.
In 2023, Kellogg split into two companies, Kellanova and WK Kellogg Co., in a move to streamline the distinct business segments. Kellanova focused on the snack side, while WK Kellogg Co. optimized its cereal and wellness portfolio.
Gary Pilnick, CEO of WK Kellogg Co., noted that Ferrero will provide the brand with additional resources to compete in the current competitive market. While the health-focused value proposition of several product lines may benefit from industry macrotrends that prioritize personal wellbeing, on the whole, cereal consumption is down.
The brand is known for its children-focused portfolios, such as Froot Loops, Rice Krispies, and Frosted Flakes.
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