Ferrero Group has announced a definitive agreement to acquire WK Kellogg Co for US$23.00 per share in cash, representing a total enterprise value of approximately US$3.1 billion. The acquisition, revealed on July 10, 2025, will give Ferrero ownership of WK Kellogg’s North American ready-to-eat cereal business, including operations across the United States, Canada, and the Caribbean. This deal adds iconic household brands such as Frosted Flakes, Froot Loops, Mini-Wheats, Special K, Rice Krispies, Raisin Bran, Kashi, and Bear Naked to Ferrero’s expanding portfolio.
The acquisition marks another milestone in Ferrero’s long-term strategy to grow its presence in the North American market. The company has been steadily diversifying beyond its traditional confectionery roots, having previously acquired brands such as Keebler, Famous Amos, Butterfinger, and more recently, frozen dessert maker Wells Enterprises. With 22 manufacturing plants and 11 offices in North America, Ferrero aims to leverage its infrastructure to drive further growth across new product categories. Upon closing, WK Kellogg’s headquarters in Battle Creek, Michigan, will serve as Ferrero’s North American cereal hub.
The proposed transaction was unanimously approved by WK Kellogg’s board of directors. Major shareholders, including the W.K. Kellogg Foundation Trust and the Gund Family, who together control approximately 21.7% of outstanding shares, have agreed to vote in favor of the acquisition. The deal is subject to regulatory approvals, shareholder consent, and customary closing conditions. It is expected to close in the second half of 2025, after which WK Kellogg Co will become a wholly owned subsidiary of Ferrero and will no longer be publicly traded.
This acquisition follows Ferrero’s 2019 purchase of select Kellogg brands and builds on its pattern of strategic expansion. WK Kellogg Co, formed in 2023 following Kellogg Company’s split into two entities (Kellanova and WK Kellogg), operates legacy cereal brands that have been staples in American households for decades. Ferrero’s acquisition not only revives interest in these brands but also signals confidence in the future of the breakfast cereal category.
Strategically, this move positions Ferrero to compete more broadly across food categories and strengthen its presence in everyday consumption occasions beyond confectionery. The addition of long-established cereal brands complements Ferrero’s existing brand ecosystem and offers significant cross-category marketing opportunities. The deal’s premium price indicates Ferrero’s strong belief in the value of these assets under its management.
However, the transition will require careful execution. Merging a public company with its own corporate culture and operational systems into a family-owned private group presents integration challenges. Aligning production systems, managing brand identities, and navigating potential regulatory hurdles will be essential for realizing the full potential of the deal. Nonetheless, Ferrero’s track record suggests a calculated and deliberate approach, making this acquisition a significant and potentially transformative step for its North American ambitions.
Chelsea covers business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Chelsea Low.
