Ferrero acquires US cereal maker Kellogg for $3.1 billion | News | Campaign Asia

Ferrero, the parent company behind confectionery brands like Nutella and Kinder, has acquired WK Kellogg for $3.1 billion. 

The deal includes debt and $23 per share in cash, which is a 40% premium to the cereal brand’s 30-day average trading price.

As part of the acquisition, WK Kellogg Co. will become a wholly owned subsidiary of Ferrero and its range of cereal brands – including Frosted Flakes, Froot Loops, Rice Krispies, Special K, Raisin Bran, Kashi, and Bear Naked – will be added to Ferrero’s product offering. 

This marks Ferrero’s entrance into the cereal market, which differs from its usual sweet and snack brands, including Nutella, Kinder, Keebler, Ferrero Rocher, and others.

It also expands the brand’s footprint in North America, as WK Kellogg Co.’s headquarters is in Battle Creek, Michigan, which will remain a core site. Ferrero currently has over 14,000 employees in North America across 22 plants and 11 offices.

Gary Pilnick, Chair and CEO of WK Kellogg Co, said: “We believe this proposed transaction maximises value for our shareowners and enables WK Kellogg Co to write the next chapter of our company’s storied legacy. 

“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.

“As a family-owned private company with values in line with our founder WK Kellogg, Ferrero provides a great home for our people and has a track record of supporting the communities in which it operates. We look forward to collaborating with their team to deliver on the great promise of cereal, explore opportunities beyond cereal, and help us bring our best to consumers every day.”

The transaction is expected to close in the second half of 2025, pending shareholder and regulatory approvals. Major shareholders, including the WK Kellogg Foundation Trust and the Gund Family, have committed to vote in favour (21.7% stake) of the deal.

This marks the family-owned brand Ferrero’s 21st acquisition, reflecting a decade-long strategy of aggressive global expansion through high-profile deals across confectionery, snacks, and bakery.

Giovanni Ferrero, executive chair of the Ferrero Group, said: “I am thrilled to welcome WK Kellogg Co to the Ferrero Group. 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.

“Over recent years, Ferrero has expanded its presence in North America, bringing together our well-known brands from around the world with local jewels rooted in the US. Today’s news is a key milestone in that journey, giving us confidence in the opportunities ahead.”

Lapo Civiletti, CEO of the Ferrero Group, added: “WK Kellogg Co, a trusted company with beloved brands, represents a meaningful addition to the Ferrero Group. Enhancing our portfolio with these complementary household brands marks an important step towards expanding Ferrero’s presence across more consumption occasions. It reinforces our commitment to delivering value to consumers in North America.”

The story first appeared on Campaign’s sister publication Performance Marketing Week.