Kellogg’s Sold for $3.1B as Ferrero Grabs Breakfast Empire

July 12, 10:47 PDT

Keypoints Summary – Kellogg’s Sold for $3.1B

Kellogg’s sold for $3.1B to Ferrero
Deal includes popular cereals like Froot Loops, Corn Flakes
Ferrero pays $23 per share—a 40% premium
Adds six U.S. plants and distribution in North America & Caribbean
WK Kellogg was spun off from Kellanova in 2023
Deal fuels Ferrero’s North American growth strategy
Sweets giant buys cereal as consumers shift to healthy food
Sale helps WK Kellogg upgrade supply chain and branding
Cereal sales declining; company vows to eliminate artificial dyes
Deal expected to close late 2025, pending approvals

Kellogg’s Sold for $3.1B in Boom Move

In a blockbuster deal, Nutella-maker Ferrero has bought WK Kellogg—the U.S. cereal arm—for $3.1B. The price works out to $23 per share. That’s a 40% premium over the 30-day average. The sale brings iconic cereals under Ferrero’s wing. It’s the biggest cereal deal in years.

Why Ferrero Took the Bite

Ferrero has spent years expanding in North America. It already owns Nestlé candy brands, ice cream makers, and cookies. Now it adds cereal—a staple product line. With this, Ferry gains six manufacturing plants and a wider reach in grocery aisles. Analysts say the move deepens Ferrero’s foothold at breakfast tables.

WK Kellogg’s Rough Ride

WK Kellogg spun off from Kellanova in late 2023. Once separate, it struggled on its own. Sales dropped more than 6% in early 2025. Net sales fell from $2.7B in 2024. It also carried high debt. The deal gives WK Kellogg a lifeline and greater resources to refresh its lineup.

The Premium Was Priceless

Ferrero paid a bold premium. WK Kellogg stock soared 30% on the news. Investors saw the value. The all-cash offer puts beloved brands—Corn Flakes, Frosted Flakes, Rice Krispies—on new footing. Ferrero says it plans to invest in innovation and marketing post-merger.

Cereal Industry on the Cusp

Sales of ready-to-eat cereal have been sliding for years. Younger consumers lean toward protein bars, smoothies, and yogurt toppings. Regulators and health advocates are pressuring cereal makers on artificial dyes. WK Kellogg pledged to remove synthetic colors from school foods by 2027. The deal positions Ferrero to reimagine these aging brands.

What Comes After the Deal

Closing depends on shareholder and regulatory approval. Expect it to wrap up late 2025. Once done, WK Kellogg’s stock will delist. The cereal maker becomes a Ferrero subsidiary. The Michigan base in Battle Creek will serve as its North American cereal hub. Ferrero plans to streamline operations—but also pump investments into the brand.

Legacy Brands, New Future

The deal merges centuries of breakfast history into a global confectionery empire. WK Kellogg traces back to 1894. Ferrero began in 1946. Together, they represent generations of brand loyalty. The goal: refuel cereal’s relevance. With healthier options, marketing muscle, and supply chain upgrades—they aim to restore shelf dominance.