Ferrero makes huge $3.1 acquisition of Kellogg’s US cereal manufacturing

Ferrero is set for a significant expansion of its portfolio in North America and Caribbean, as it confirms a huge $3.1 billion deal for WK Kellogg Co’s breakfast cereal manufacturing operations in the region, reports Neill Barston.

As Confectionery Production has previously reported, the Italian-founded business, which is due to play a renewed role in our World Confectionery Conference on 11 September in Brussels, has made strong moves to increase its overall presence in the US within the past few years.

This has included investment in its overall manufacturing capacity and facilities for the region, as well as making notable inroads with enhancing its distribution and logistics operations. 

Significantly, the deal with Kellogg, which has a 120 years of manufacturing history,  is set to significantly ramp-up its overall presence within the food sector, making it a key player beyond the confectionery and snacking market (see our exclusive interview with the business as part of our Sweets & Snacks Expo video review below).

Under the terms of its new deal, the company agreed to acquire WK Kellogg Co, for $23.00 per share in cash, representing a total enterprise value of $3.1 billion, covering  manufacturing, marketing and distribution of WK Kellogg’s breakfast cereals across the United States, Canada and the Caribbean.

Ferrero presently has 14,000 employees across 22 plants and 11 offices in North America, handling brands including Nutella, Kinder, Tic Tac, and Ferrero Rocher as well as iconic American brands such as Butterfinger, Keebler and Famous Amos. It also includes via its Ferrara business, confectionery brands like Jelly Belly, Nerds, and Trolli

According to the company, it intends to make strategic investments into core Kellogg brands, such as  Kellogg’s Frosted Flakes, Kellogg’s Froot Loops, Kellogg’s Frosted Mini Wheats, Kellogg’s Special K, Kellogg’s Rice Krispies, Kellogg’s Raisin Bran, Kashi, and Bear Naked.

“I am thrilled to welcome WK Kellogg Co to the Ferrero Group. This is more than just an acquisition – it represents the coming together of two companies, each with a proud legacy and generations of loyal consumers,” said Giovanni Ferrero, Executive Chairman of the Ferrero Group.

“Over recent years, Ferrero has expanded its presence in North America, bringing together our well-known brands from around the world with local jewels rooted in the U.S. Today’s news is a key milestone in that journey, giving us confidence in the opportunities ahead.”

As the business noted, there were clear synergies between the two companies, starting out as small family-owned operations, with Ferrero itself holding more than 75 years of history, and has continued to grow its international footprint over the decades.

Furthermore, WK provided a trading update surrounding the acquisition, with the second quarter ended June 28, 2025, net sales were expected around   $610 million to $615 million.

Gary Pilnick, Chairman and Chief Executive Officer of WK Kellogg Co, felt the move would be a strong one for both parties.

He commented: “We believe this proposed transaction maximizes value for our shareowners and enables WK Kellogg Co to write the next chapter of our company’s storied legacy,” said 

“Since becoming an independent public company in October 2023, we have made excellent progress on our journey to become a more focused and more profitable business – driven by our tremendous people and a winning culture – all while building a strong foundation for future growth.

“Joining Ferrero will provide WK Kellogg Co with greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market. As a family-owned private company with values in line with our founder W.K. Kellogg, Ferrero provides a great home for our people and has a track record of supporting the communities in which it operates. We look forward to collaborating with their team to deliver on the great promise of cereal, explore opportunities beyond cereal, and help us bring our best to consumers every day,” he noted of the deal, which is subject to regulatory approval, and is expected to be completed this autumn.