Ferrero to acquire Kellogg’s for $3.1B

Italian chocolate maker Ferrero announced on Thursday that it will acquire American cereal brand Kellogg’s for $3.1 billion, paying $23 per share. The move aims to expand Ferrero’s presence in the US market.

WK Kellogg shares surged 31% following the announcement. The deal is subject to shareholder approval and could close by the end of 2025.

The deal
The acquisition includes six manufacturing plants and gives Ferrero control over well-known cereal brands such as Froot Loops, Special K, and Frosted Flakes across North America and the Caribbean. It also helps diversify Ferrero’s portfolio amid rising cocoa prices.

The purchase comes as Kellogg struggles in the US. Its cereal sales have dropped 6% since 2022, and net sales fell 2% to $2.7 billion last year, driven by a shift in consumer preferences toward protein-based breakfast options like bars and shakes.

Founded in 1906, Kellogg restructured in 2023, spinning off snacks into Kellanova, which M&M’s maker, Mars Inc., is eyeing buying.

Family-owned Ferrero, founded in 1946, has been expanding its American presence since acquiring Nestle’s candy brands in 2018 and ice cream maker Wells Enterprises in 2022.

In 2024, Ferrero reported a 9% rise in sales to $21.6 billion.