Key Facts
• July 10, WK Kellogg agreed to a $3.1 billion acquisition by Ferrero.
• Ferrero, known for Ferrero Rocher and Nutella, will pay $23 per share.
• The offer includes a 31% premium over the previous closing price.
• WK Kellogg shares rose over 30%, reaching $22.89 in morning trading.
• The acquisition is expected to close in late 2025.
• WK Kellogg has faced declining demand due to rising costs and health trends.
• Ferrero’s largest acquisition in recent years; it bought Nestlé’s U.S. candy business for $2.8 billion in 2018.
Summary
On July 10, U.S. cereal maker WK Kellogg agreed to a $3.1 billion acquisition by Italy’s Ferrero, the company behind Ferrero Rocher and Nutella. The deal values Kellogg shares at $23 each, a 31% premium over the prior closing price. Following the announcement, Kellogg’s stock surged over 30%, reaching $22.89 in morning trading. The acquisition, expected to finalize in late 2025, comes as Kellogg struggles with declining demand due to rising costs and shifting consumer preferences toward health-conscious products. For Ferrero, this marks its largest acquisition in recent years, following its $2.8 billion purchase of Nestlé’s U.S. candy business in 2018.
