Italian company Ferrero, which produces Nutella and Kinder chocolate, has acquired WK Kellogg for $3.1bn [IT]

13 comments

1. > **The Italian Nutella group acquires the inventor of corn flakes: a long history but a present with many challenges.**
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   > Ferrero has reached an agreement to acquire the cereal company WK Kellogg for $23 per share in cash, equivalent to $3.1 billion. This is according to a press release from the Alba (Cuneo)-based food company. The deal, announced yesterday evening, was unanimously approved by WK Kellogg’s board of directors. The acquisition involves a historic breakfast brand, present in numerous markets, which, however, is not immune to challenges, from changing eating habits to tensions over raw materials. Indeed, 2024 results indicate that WK Kellogg, which spun off its Kellanova snacks business in 2023, posted earnings of just $72 million on revenue of $2.71 billion, resulting in a margin of 2.62%. Ferrero, which does not disclose cash on hand information in its financial statements , is a much more solid company, with annual global revenue exceeding $18 billion. Evidently the Alba group saw in Kellogg a brand strength and an interesting product to highlight.
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   > **The acquisition was authorized by the board of directors, according to Giovanni Ferrero.**
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   > The Italian group, which owns Nutella, Kinder, and Ferrero Rocher, said in a statement that “the acquisition is part of Ferrero’s strategic growth plan.” The transaction, the company said, “is another chapter in Ferrero’s proven strategy of acquiring, investing in, and growing iconic brands, continuing to enhance its overall presence and product offering in North America.
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   > “I am delighted to welcome W.K. Kellogg to the Ferrero Group. This is more than just an acquisition: it represents the union of two companies with a rich heritage and generations of loyal consumers,” said Giovanni Ferrero, Executive Chairman of the Ferrero Group.
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   > The transaction includes the manufacturing, marketing, and distribution of W.K. Kellogg Co.’s breakfast cereal portfolio in the United States, Canada, and the Caribbean. Kellogg’s brands include Fruit Loops, Special K, Frosted Flakes, and Rice Krispies. The deal is expected to close in the second half of the year. Once the transaction is completed, Kellogg’s shares will no longer be listed on the New York Stock Exchange and the company will become a subsidiary of Ferrero.
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   > **The story of Kellogg, the inventor of corn flakes**
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   > The company was founded in 1906 in Battle Creek, Michigan, by Will Keith Kellogg, the inventor of corn flakes. The company pioneered the industrial production of breakfast cereals, revolutionizing American eating habits.
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   > In 2023, it split into two entities: WK Kellogg for cereals in North America and Kellanova for snacks. In 2024, WK Kellogg reported revenue of approximately $2.71 billion (-2% compared to the previous year) and net income of approximately $72 million (-34.5%).
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   > On the day Ferrero announced its acquisition, the American company provided preliminary results of net sales and adjusted EBITDA for the second quarter of 2025. For the period ended June 28, the company expects net sales to be between $610 million and $615 million, while adjusted EBITDA is expected to be between $43 million and $48 million.
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   > **Ferrero’s accounts continue to grow**
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   > ‘s latest financial statement Ferrero , the one closed by the holding company Ferrero International SA on August 31, 2024, records global revenues of €18.4 billion, an 8.9% increase compared to the previous year. The group has 37 production plants and a global workforce of 47,517.
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   > The focus on North America is nothing new for Ferrero, which in its financial statement mentioned plans for the group’s first chocolate processing plant in the United States. The new 225,000-square-foot facility is located in Bloomington, Illinois. It produces chocolate for Ferrero’s leading North American brands, including Kinder, Ferrero Rocher, Butterfinger, and Crunch, and houses a new Kinder Bueno production facility.

2. I hope they are ready for the US lawsuits coming their way now that Kellogg is not American anymore.

3. > Italian company Ferrero, which

   sells variously flavored mixes of oil and sugar.

   I wonder how long it’ll take until these companies get same treatment for endangerment of public health and rabid marketing towards children, as years ago tobacco products makers finally started to receive.

4. Good for them.

   Now please stop using palm oil for Nutella.

5. So it seems that Kellogg’s cereals in Europe will continue to be American owned, while Kellogg’s cereals in America will now be European owned.

   A couple of highlights from Wikipedia:

   >Kellogg’s was split into two companies on October 2, 2023, with [WK Kellogg Co](https://en.m.wikipedia.org/wiki/WK_Kellogg_Co)owning the North American cereal division, and the existing company being rebranded to “Kellanova”

   >The purpose of the split was to separate the faster-growing convenience food, and international cereal products market, from the slower growth North American cereal market. “Kellogg’s” itself became a brand name of both companies.

   >[Mars Inc.](https://en.m.wikipedia.org/wiki/Mars_Inc.), the owner of [M&M’s](https://en.m.wikipedia.org/wiki/M%26M%27s) and [Snickers](https://en.m.wikipedia.org/wiki/Snickers), agreed to acquire Kellanova for nearly $30 billion in August 2024.

6. Well there is hope that Rice Krispies finally weil be available again outside of Italy. That’s pretty much the only thing in the Kellogg’s product catalog where no superior alternative exists and the only thing close to impossible to buy anywhere in the EU with the exception of Italy for whatever reason.

7. This is great news. Lets bring more supermarket products home to europe.

8. Luxembourg*****

   Dovete pagare le tasse in ITALIAAAAAAAAAAAAAAAAAAAA

9. …so does this mean Kelloggs cereals are no longer to be boycotted?

10. More sugar more sugar more patients in the hospital!

11. Love me some ferrero rochers.

12. Does this help them to bypass tariffs?

13. Poor ferrero, now they will get blamed for everything and get sued into oblivion by US courts

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