Pune, India | September 17, 2025
Ferrero, the Italian confectionery giant behind Nutella and Kinder, has agreed to acquire WK Kellogg Co in an all-cash deal worth $3.1 billion. The company will pay $23 per share, offering a 40% premium over WK Kellogg Co’s 30-day average stock price. This move marks Ferrero’s bold entry into the U.S. breakfast cereal market.
The acquisition includes WK Kellogg Co.’s cereal business in the United States, Canada, and the Caribbean. Ferrero will gain popular brands like Frosted Flakes, Special K, Froot Loops, Raisin Bran, Rice Krispies, Kashi, Bear Naked, and Frosted Mini-Wheats. The deal also covers the company’s entire manufacturing, marketing, and distribution network.
Ferrero sees this as a key step in diversifying its product portfolio beyond sweets and snacks. By entering the cereal category, the company aims to capture new eating occasions and strengthen its North American presence. The U.S. cereal market, valued at over $10 billion, offers strong growth potential.
Ferrero already operates 22 manufacturing plants and 11 offices in North America. It employs more than 14,000 people across the region. Acquiring WK Kellogg Co will expand Ferrero’s reach and improve its competitiveness in more food categories. It also supports efforts to enhance logistics, innovation, and supply chain efficiency.
Giovanni Ferrero, Executive Chairman of the Ferrero Group, described the acquisition as a union of iconic brands. He said both companies share a commitment to quality and have generations of loyal consumers. He confirmed that WK Kellogg Co will keep its headquarters in Battle Creek, Michigan, the historical hub of U.S. cereal production.
Gary Pilnick, Chairman and CEO of WK Kellogg Co, spoke about the company’s journey since its 2023 spin-off from Kellogg Company. He noted that the business has focused on profitability, operational discipline, and brand growth. Pilnick believes that joining Ferrero will bring access to capital and global resources. He assured that WK Kellogg Co will maintain its identity while gaining international support.
Both boards of directors have approved the deal. However, it still needs regulatory clearance and shareholder approval. Ferrero expects to complete the acquisition in the second half of 2025 if all goes as planned.
WK Kellogg Co has also released preliminary results for Q2 of fiscal year 2025. The company projects net sales between $610 million and $615 million. Adjusted EBITDA is estimated between $43 million and $48 million. These figures show the company’s ongoing progress toward its financial targets.
Industry analysts consider the acquisition a key moment in the packaged food sector. Many believe it could trigger more mergers, especially in the breakfast category. Companies may respond to rising demand for healthier products and growing competition from private-label brands.
Ferrero already owns several leading U.S. brands in cookies, chocolates, and frozen desserts. By adding cereals, it strengthens its presence in high-repeat purchase categories with a broad household reach. The deal also brings in cereal production expertise and manufacturing capacity.
If approved, this will become one of the most notable food industry deals of 2025. It could also shape future mergers and acquisitions across the global packaged food market.
