WK Kellogg to Be Acquired by Ferrero Rocher for $3.1 Billion
On Thursday, WK Kellogg reached an agreement with the owners of Ferrero Rocher for a purchase deal valued at approximately $3.1 billion. This move comes as grain manufacturers are facing challenges with low consumer demand, which has been compounded by ongoing high inflation rates.
The snack industry has seen intensified activity as food brands have adjusted sales strategies in response to rising prices driven by increased input costs as well as a shift in consumer preferences toward healthier products.
Ferrero is set to offer WK Kellogg shareholders $23 per share, which reflects a 31% premium based on the stock’s recent close.
Following the announcement, shares of the cereal company surged by 30%, reaching $22.84 on Thursday.
This acquisition marks Ferrero’s largest in recent years, uniting well-known brands such as Nutella, Kinder, Chick TAC, Frost Flakes, Flute Loop, and Special K under one umbrella.
Reports from various news outlets, including Reuters, indicated that the candy maker behind Nutella had been in negotiations to buy WK Kellogg.
The deal is anticipated to close in the latter half of 2025.
WK Kellogg is a spin-off of Kellanova and manages the North American grain business of its former parent, Kellogg.
Kellanova, known for Cheez-It products, is currently undergoing its own acquisition by Mars, a major player in the candy industry, in a deal worth nearly $36 billion.
Other food packaging companies, including JM Smucker, Kraft Heinz, and Pepsico, have signaled subdued demand due to cautious consumer spending patterns in the U.S. after ongoing price hikes as firms adapt to higher input costs.
The parent company of Raisin Bran is projecting second-quarter net sales to fall between $610 million and $615 million, notably below analysts’ expectations of around $653.7 million. They also forecast adjusted core profits in the range of $43 million to $48 million.
The packaged food manufacturer is facing pressure from Health Secretary Robert F. Kennedy Jr. of the American Healthy Commission to stop using synthetic dyes in their products.
Ferrero, the creator of Nutella Hazelnut Spread, has evolved into a global entity, driven by an aggressive acquisition strategy under Executive Chairman Giovanni Ferrero.
Back in 2018, Ferrero acquired Nestlé’s U.S. sweets division for $2.8 billion.
For the fiscal year ending August 31, the group reported revenues of 18.4 billion euros (around $19.2 billion) and mentioned increasing investments aimed at expanding manufacturing capacity and broadening its product range.
