Key Takeaways
- WK Kellogg shares jumped 30% on information the maker of Frosted Flakes and Froot Loops had been acquired by Italian sweets firm The Ferrero Group for $23 per share in money, or about $3.1 billion.
- The inventory had entered Thursday buying and selling barely detrimental for the 12 months.
- WK Kellogg emerged in 2023 when Kellogg cut up up its cereal strains and snack enterprise, which grew to become Kellanova.
Shares of WK Kellogg (KLG) surged 30% Thursday because the maker of Froot Loops and Frosted Flakes introduced it had reached a deal to be acquired by Italian sweets firm The Ferrero Group for $23 per share in money, or about $3.1 billion.
WK Kellogg inventory had soared in a single day on a report from The Wall Avenue Journal that the businesses may finalize a deal “as quickly as this week.” Shares had been just lately buying and selling for $22.92—a stage they hadn’t hit in additional than a 12 months as shifting attitudes in direction of weight loss program and worth will increase within the class ate into cereal gross sales. The inventory had entered Thursday buying and selling barely detrimental for 2025.
“We imagine this proposed transaction maximizes worth for our shareowners and permits WK Kellogg Co to put in writing the following chapter of our firm’s storied legacy,” CEO Gary Pilnick stated, including that becoming a member of Ferrero would offer the agency “with better assets and extra flexibility to develop our iconic manufacturers on this aggressive and dynamic market.”
The transaction is anticipated to shut within the second half of 2025. The New York Inventory Change-listed cereal big stated as soon as it does, it might turn out to be a privately held subsidiary of Ferrero, which has greater than 14,000 staff in North America, the place its portfolio consists of Nutella, Tic Tac, and Butterfinger.
“Over current years, Ferrero has expanded its presence in North America, bringing collectively our well-known manufacturers from all over the world with native jewels rooted within the U.S.,” Ferrero Group Government Chairman Giovanni Ferrero stated. “Right this moment’s information is a key milestone in that journey, giving us confidence within the alternatives forward.”
WK Kellogg emerged in 2023 when Kellogg cut up up its cereal strains and snack enterprise, which grew to become Kellanova (Okay).
