Ferrero Kellogg Acquisition to Reshape Cereal Market in $3.1 Billion Deal

Iconic cereal brands find a new home under Ferrero’s growing North American portfolio

In a strategic move set to shake up the breakfast aisle, Ferrero Group has agreed to acquire WK Kellogg Co. in a $3.1 billion deal. This Ferrero Kellogg acquisition includes legendary cereal brands such as Frosted Flakes, Froot Loops, Special K, and Rice Krispies. The transaction, announced Thursday, is expected to close in the second half of 2025.

The acquisition expands Ferrero’s presence in the North American cereal category. It also strengthens the company’s portfolio, which already includes Keebler, Nutella, Kinder, and Ferrero Rocher.

A Bold Step Forward for Ferrero and WK Kellogg Co.

WK Kellogg Co. formed in October 2023 when Kellogg Co. split into two distinct companies. WK Kellogg focused on cereals, while Kellanova pivoted to snacks. Since then, WK Kellogg has worked to streamline operations and improve profitability.

Gary Pilnick, chairman and CEO of WK Kellogg Co., said the company had made great progress as an independent business. He believes this new chapter will unlock even greater opportunities for its iconic brands.

“Joining Ferrero will provide greater resources and more flexibility to grow,” Pilnick explained in the joint announcement.

Expanding Brand Power and Global Reach

Ferrero, headquartered in Parsippany, New Jersey, operates 22 plants and 11 offices across North America. The company employs over 14,000 people and has steadily expanded its product portfolio.

Giovanni Ferrero, executive chairman, expressed excitement over the deal. He said, “This is more than just an acquisition. It’s the joining of two legacies with generations of loyal consumers.”

The Ferrero Kellogg acquisition covers the manufacturing, marketing, and distribution of WK Kellogg’s cereal lines across the U.S., Canada, and the Caribbean.

Financial Outlook and Competitive Landscape

WK Kellogg Co. expects second-quarter 2024 net sales between $610 million and $615 million. It also projects adjusted EBITDA of $43 million to $48 million.

This deal follows another major food industry transaction. In August 2024, Mars announced its $35.9 billion acquisition of Kellanova, WK Kellogg’s former sister company. That deal is also expected to close by the end of 2025.

Both transactions highlight rapid consolidation within the food and beverage sector. They also signal a race for global market share among legacy brands.