Ferrero to Acquire WK Kellogg in $3.1 Billion Deal to Expand US Footprint

WK Kellogg, the iconic US breakfast cereal maker behind brands like Corn Flakes and Froot Loops, has agreed to be acquired by Ferrero International, the Italian confectionery giant best known for Nutella and Ferrero Rocher, in a deal valued at $3.1 billion.

Ferrero will pay $23 per share in cash, a 31.4% premium over WK Kellogg’s previous closing price. The acquisition, announced Thursday, marks a significant move by the privately held, family-owned Ferrero Group to expand its North American presence and diversify beyond confectionery into breakfast foods.

WK Kellogg, which was spun off from Kellogg Company’s global snacking business (now known as Kellanova) in 2023, has faced headwinds from changing consumer preferences, rising inflation, and increased competition from private-label products. The split left WK Kellogg focused exclusively on cereal products, a category that has struggled in recent years due to growing demand for healthier, fresh food options.

Ferrero said it plans to invest in and expand WK Kellogg’s portfolio of well-known brands, which also includes Rice Krispies, Kashi, and Raisin Bran.

“This acquisition complements our existing product lines and broadens our reach across more consumption occasions,” Ferrero CEO Lapo Civiletti said in a statement.

The acquisition follows a broader trend of legacy food brands being taken private. In a parallel move, Kellanova was recently acquired by Mars Inc. for $36 billion, underscoring a consolidation wave in the packaged food industry as companies respond to shifting consumer behaviors and economic pressures.

WK Kellogg CEO Gary Pilnick welcomed the deal, noting that being part of a private company like Ferrero could provide the cereal maker with greater flexibility and resources.

“This partnership gives our iconic brands a long-term home with a company that understands how to grow beloved food products,” he said.

Despite its historical status in American households and recognizable mascots like Tony the Tiger, WK Kellogg has faced flat sales, rising operational costs, and over $500 million in debt. Public scrutiny has also increased, with the Trump administration recently launching initiatives targeting artificial food coloring—affecting products such as Froot Loops—as part of a broader “Make America Healthy Again” campaign.

WK Kellogg has pledged to remove synthetic dyes from cereals served in schools by the 2026–2027 school year but has not announced plans to do the same for broader consumer offerings.

Axios, the Wall Street Journal, and BBC contributed to this report.