The Ferrero Group has agreed to purchase WK Kellogg Co for $3.1 billion, marking a major move to strengthen its position in North America. The deal will see Ferrero acquire WK Kellogg’s assets in the US, Canada, and the Caribbean, including its well-known breakfast cereal brands. Once completed, the transaction will take WK Kellogg private, aligning with Ferrero’s family-owned structure.
The acquisition is set to close in the second half of the year, contingent on shareholder and regulatory approvals. It includes a suite of popular cereal brands such as Frosted Flakes, Special K, Raisin Bran, and Rice Krispies, which dominate WK Kellogg’s sales.
Ferrero has previously made strategic acquisitions in North America, including its 2019 purchase of several Kellogg snack brands. With this latest deal, the company seeks to expand its market share by integrating a broader range of household names into its portfolio, enhancing its offering in the highly competitive North American food sector.
The move follows WK Kellogg’s struggles post-spin-off from Kellogg Co in 2023, as the company worked to optimize operations and spur growth. This acquisition provides WK Kellogg with additional resources and support to revitalize its brands and improve market performance.
The deal also highlights the ongoing trend of consolidation in the food industry, as larger players like Ferrero and Mars Inc. continue to grow through strategic acquisitions, reshaping the competitive landscape.