Kellogg Company is planning to separate its North American cereal and plant-based foods businesses via tax-free spin-offs, resulting in three independent public companies, which it says will each be better positioned to unlock their full standalone potential.
The three companies, whose names will be determined later, would be the following:
- ‘Global Snacking Co.’, with about $11.4 billion in net sales, will be a company in global snacking, international cereal and noodles, and North America frozen breakfast;
- ‘North America Cereal Co.’, with about $2.4 billion in net sales, will be a cereal company in the U.S., Canada, and Caribbean; and
- ‘Plant Co.’, with about $340 million in net sales, will be a plant-based foods company, anchored by the MorningStar Farms brand.
“Kellogg has been on a successful journey of transformation to enhance performance and increase long-term shareowner value. This has included re-shaping our portfolio, and today’s announcement is the next step in that transformation,” said Steve Cahillane, Kellogg Company’s chairman and Chief Executive Officer.
“These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities. In turn, each business is expected to create more value for all stakeholders, and each is well positioned to build a new era of innovation and growth.”