Ferrero Moves Beyond Chocolate with US$3 Billion WK Kellogg Deal

Italian multinational Ferrero Group announced Thursday it will acquire US-based cereal maker WK Kellogg for US$3.1 billion (MX$57.6 billion), expanding its footprint in the North American food market and diversifying its portfolio beyond chocolate.

Under the terms of the deal, Ferrero will pay US$23 per share in cash, representing a 31% premium over WK Kellogg’s closing price on July 9. The acquisition is subject to shareholder approval and is expected to close in the second half of 2025.

WK Kellogg shares surged 31% following the announcement, trading at US$22.86, just below the offer price. Earlier, shares briefly peaked at US$27.90 during pre-market trading.

Ferrero, best known for Nutella and Ferrero Rocher, is led by Executive Chairman Giovanni Ferrero, who has spearheaded a series of US-focused acquisitions. The group reported €18.4 billion in sales in 2023, a 9% increase year over year. Its most recent acquisition was Bomb Pops, an ice cream brand, in 2022.

In a joint statement, Ferrero and WK Kellogg said the merger aligns with Ferrero’s strategy of combining global brands with strong local businesses. Ferrero plans to invest in WK Kellogg’s flagship brands, including Frosted Flakes and Rice Krispies.

“This combination continues our strategy to unite our well-known global brands with local gems in the United States,” said Giovanni Ferrero. “We will invest in and grow WK Kellogg’s key brands and others that are well-loved by US consumers.”

WK Kellogg–spun off from Kellogg’s snack division in 2023 (now Kellanova, owner of Pringles)--has struggled in a competitive cereal market. In May, it lowered its annual sales forecast, citing shifting consumer preferences away from sugary cereals and toward more affordable options. The company now expects second-quarter sales between US$610 million and US$615 million, down from US$663 million in 1Q25.

Gary Pilnick, CEO, WK Kellogg, said joining Ferrero will provide the resources and flexibility needed for growth. The deal received unanimous approval from WK Kellogg’s board. In addition, the WK Kellogg Foundation Trust and the Gund family, which together own 21.7% of the company, have agreed to sell their shares.