Cerberus and Dean Metropoulos Bid on WK Kellogg Amid Kellogg Company Restructuring

Kellogg Company, the world leader in cereal production and marketing, has been the subject of a bid by Cerberus and Dean Metropoulos. The company's net sales are primarily driven by snacks (61.8%), cereals (20.9%), and frozen products (8.3%), with the remaining 9% attributed to other products. As of February 2024, Kellogg had 21 production sites worldwide and a global presence with net sales split across North America (50.1%), Asia/Middle East/Africa (21.2%), Europe (19.1%), and Latin America (9.6%). The company completed the separation of its North America cereal business in October 2023.

Ferrero Group, the global confectionery giant, has announced plans to acquire WK Kellogg Co. for approximately $3.1 billion, marking a significant move in the snacking industry [1]. The deal, expected to close in the second half of 2025, will see Ferrero pay $23 per share for WK Kellogg, a 31% premium over the stock's mid-day trading price on Thursday [1].

WK Kellogg, the North American cereal business that emerged from Kellogg Company's split in October 2023, brings a portfolio of well-known brands such as Frosted Flakes, Special K, and Froot Loops to the table [2]. The acquisition will also include six manufacturing plants and marketing and distribution operations across the U.S., Canada, and the Caribbean [3].

Ferrero's acquisition strategy has been aggressive, with the company having previously acquired Nestlé's U.S. confectionery business for $2.8 billion in 2018 and Wells Enterprises, the maker of Blue Bunny and Halo Top ice cream, in 2022 [3]. The latest acquisition is part of Ferrero's broader strategy to expand its presence in North America and diversify its product portfolio.

The deal comes at a time when the snacking industry is facing challenges due to inflation, higher input costs, and shifting consumer preferences towards healthier options [1]. WK Kellogg's acquisition by Ferrero is seen as a way to weather these challenges by leveraging Ferrero's global brand portfolio and distribution network.

WK Kellogg's Chairman and CEO Gary Pilnick stated that the deal will provide the scale and resources needed to grow the business and evolve its portfolio. "The combination with Ferrero presents a tremendous opportunity to advance our strategic growth plans, while also continuing to deliver for customers," Pilnick said [3].

The acquisition is also seen as a response to Mars Inc.'s pending acquisition of Kellanova, the global snacking, international cereal, and noodles business that was created alongside WK Kellogg [2]. The Mars-Kellanova deal has been cleared by the US Federal Trade Commission but is currently under review by the European Commission.

In conclusion, Ferrero's acquisition of WK Kellogg is a strategic move that aims to expand the company's North American presence and diversify its product portfolio. The deal is expected to close in the second half of 2025 and will bring together two of the world's most recognizable consumer brands.

References:
[1] Reuters. (2025, July 10). WK Kellogg is bought by Ferrero for $3.1 billion. Retrieved from https://www.reuters.com/business/froot-loops-maker-wk-kellogg-soars-50-after-reports-italys-ferrero-nearing-2025-07-10/
[2] Food Business News. (2025, July 10). Ferrero Group reportedly near deal to buy WK Kellogg. Retrieved from https://www.foodbusinessnews.net/articles/28604-ferrero-group-reportedly-near-deal-to-buy-wk-kellogg
[3] Financial Express. (2025, July 10). Brandwagon from Nutella to corn flakes: Ferrero plans $3.1b WK Kellogg deal. Retrieved from https://www.financialexpress.com/business/brandwagon-from-nutella-to-corn-flakes-ferrero-plans-3-1b-wk-kellogg-deal-3910593/