With its well-known brands and significant consumer acceptance, Ferrero’s acquisition of WK Kellogg Co is expected to broaden the company’s reach as it plans strategic growth.
The Ferrero Group and WK Kellogg Co announced it they has entered into a definitive agreement under which Ferrero has agreed to acquire WK Kellogg Co, for $3.1 billion and become a wholly owned subsidiary of Ferrero.
The acquisition, which includes the manufacturing, marketing and distribution of WK Kellogg Co’s iconic portfolio of breakfast cereals across the United States, Canada and the Caribbean, is part of Ferrero’s plan for growth.
This transaction represents another chapter in Ferrero’s strategy to acquire, invest in, and grow iconic brands as it continues to enhance its overall footprint and product offerings in North America. As a result of this strong growth, in North America, Ferrero and its affiliated companies currently has more than 14,000 employees across 22 plants and 11 offices.
The North America portfolio includes Nutella, Kinder, Tic Tac, and Ferrero Rocher as well as iconic American brands such as Butterfinger, Keebler, and Famous Amos. It also includes confectionery brands like Jelly Belly, NERDS, and Trolli as well as frozen treat brands like Blue Bunny, Bomb Pop, and Halo Top.
Drawing upon its previous successful acquisitions in the United States, Ferrero says it plans to invest in and grow WK Kellogg Co’s iconic brands including Kellogg’s Frosted Flakes, Kellogg’s Froot Loops, Kellogg’s Frosted Mini Wheats, Kellogg’s Special K, Kellogg’s Rice Krispies, Kellogg’s Raisin Bran, Kashi, Bear Naked, and more.
“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,” said Giovanni Ferrero, executive chairman of the Ferrero Group. “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.”
“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,” said Gary Pilnick, chairman and chief executive officer of WK Kellogg Co. ”
Lapo Civiletti, chief executive officer 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 and reinforces our commitment to delivering value to consumers in North America.”
