Pune, India | September 17, 2025
The Italian confectionery leader behind Nutella and Kinder has agreed to buy WK Kellogg Co in a $3.1 billion all-cash transaction. Ferrero will pay $23 per share, which represents a 40% premium over WK Kellogg Co’s 30-day average trading price. This acquisition marks Ferrero’s significant entry into the U.S. breakfast cereal market, expanding its reach beyond snacks and sweets.
The deal includes WK Kellogg Co.’s entire cereal business operations across the United States, Canada, and the Caribbean. Ferrero will acquire top brands such as Frosted Flakes, Special K, Froot Loops, Raisin Bran, Rice Krispies, Kashi, Bear Naked, and Frosted Mini-Wheats. It also takes over WK Kellogg Co’s full manufacturing, marketing, and distribution infrastructure, adding substantial capabilities to Ferrero’s existing network.
Ferrero views this move as a strategic expansion aimed at diversifying its product portfolio and tapping into new eating occasions. The U.S. cereal market remains robust, valued at more than $10 billion annually. Ferrero plans to invest heavily in these established brands to fuel growth and foster innovation within the breakfast category.
Currently, Ferrero operates 22 plants and 11 offices in North America, employing over 14,000 people. Acquiring WK Kellogg Co. enhances its presence across multiple food categories and strengthens its ability to compete in the broader food sector. The deal supports Ferrero’s long-term goals to improve logistics, drive innovation, and optimize its supply chain efficiencies.
Giovanni Ferrero, Executive Chairman, described the acquisition as a union of legacy brands with shared values. He emphasized that both companies cherish “generations of loyal consumers” and share a deep commitment to quality. Ferrero confirmed that WK Kellogg Co.’s headquarters would remain in Battle Creek, Michigan, the historic center of American cereal production.
Gary Pilnick, Chairman and CEO of WK Kellogg Co, highlighted the company’s progress since its 2023 spin-off from Kellogg Company. He noted their sharpened focus on profitability, operational discipline, and brand development. Pilnick sees the partnership with Ferrero as an opportunity to access global resources and capital that will accelerate growth. He assured that WK Kellogg Co will maintain its unique identity while benefiting from Ferrero’s global support.
Both companies’ boards of directors have unanimously approved the transaction. The deal now awaits regulatory clearance and WK Kellogg Co shareholder approval. If all conditions are met, the acquisition is expected to close in the second half of 2025.
WK Kellogg Co has also provided preliminary financial results for Q2 of fiscal year 2025, projecting net sales between $610 million and $615 million. Adjusted EBITDA is forecasted to fall between $43 million and $48 million, indicating steady progress toward its financial targets.
Industry experts view this acquisition as a landmark event in the packaged foods sector and anticipate it could trigger further consolidation in the breakfast category. The growing demand for healthier options and rising private-label competition are pushing companies to explore strategic moves to strengthen their market positions.
Ferrero already owns several prominent U.S. brands in cookies, chocolate, and frozen desserts. By integrating the cereal lineup, the company significantly boosts its presence in categories that benefit from strong household penetration and repeat purchasing.
Beyond acquiring valuable brand names, Ferrero gains WK Kellogg Co.’s expertise and production capabilities in the cereal industry. This deal aligns perfectly with Ferrero’s broader vision to become a global, multi-category food powerhouse.
Once regulatory approvals are secured, this acquisition will stand as one of the most notable food industry deals of the year and may shape future mergers and acquisitions trends across the sector.
About the Author
