Ferrero acquires WK Kellogg for $3.1B, uniting Nutella and Froot Loops

Ferrero is set to acquire cereal maker WK Kellogg for $3.1 billion, bringing brands like Nutella and Tic Tac together with Frosted Flakes and Froot Loops. Kellogg’s shares surged 30% to $22.85, just below the deal price, after The Wall Street Journal first reported the deal. The transaction is expected to close in the second half of 2025.

WK Kellogg expects second quarter revenue to range from $610 million to $615 million, below analysts’ expectations of around $650 million. Last quarter, net sales fell 6.2% to $663 million, with net income dropping 45.5% to $18 million. Cereal category sales have been declining, with WK Kellogg’s dollar sales down 5.7%.

This deal follows Kellogg’s split into two companies, with WK Kellogg and Kellanova. Kellanova, housing snack brands like Pop-Tarts, will be acquired by Mars Candy for close to $36 billion. The food and beverage industry has seen other significant deals, including PepsiCo’s acquisitions of Siete Foods and Poppi earlier this year for $1.2 billion and $1.95 billion, respectively.

Ferrero sees the deal as a significant move to expand its presence in North America, with executive chairman Giovanni Ferrero describing it as a “key milestone” in their growth efforts in the region.

Read more at Yahoo Finance: Ferrero clinches deal to acquire WK Kellogg for $3.1B, bringing Nutella and Froot Loops under one roof