Nutella maker Ferrero to acquire WK Kellogg for $3.1bn
Summary
Ferrero Group is buying WK Kellogg, a U.S. cereal brand, for about $3.1 billion. This deal comes as the cereal industry faces less demand and rising costs. The acquisition is expected to complete in the second half of 2025.Key Facts
- Ferrero Group will purchase WK Kellogg for approximately $3.1 billion.
- Ferrero's offer is $23 per share, a 31% increase over the previous stock price.
- The deal will close in the second half of 2025.
- WK Kellogg was spun off from a company called Kellanova.
- Kellanova, Cheez-It's parent company, is being acquired by Mars for nearly $36 billion.
- WK Kellogg expects lower sales and profit than analysts predicted.
- US Health and Human Services is pressuring food companies to stop using synthetic dyes.
- Ferrero employs 14,000 people in North America and bought Nestle's US candy business in 2018.
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