Ferrero has gained more ground in the US through its acquisition of WK Kellogg for $4.7 billion (US$3.1b). Since 2018, Ferrero has acquired Nestle's US chocolate business for $4.25 billion, Kellogg's cookies and fruit snacks unit for $2 billion, and ice cream company Wells Enterprises.
The Kellogg company was split into two independent businesses in 2023, with WK Kellogg’s portfolio including the “Big 6” cereals – Frosted Flakes, Special K, Raisin Bran, Frosted Mini Wheats, and Rice Crispies.
Ferrero paid US$23.00 per share in cash, and the acquisition includes the manufacturing, marketing and distribution of WK Kellogg Co’s breakfast cereal portfolio across the US, Canada and Caribbean.
It now has 14,000 employees across 22 plants and 11 offices in North America, and its brand portfolio includes Nutella, Kinder, Tic Tac, and Ferrero Rocher, Butterfinger, Keebler, and Famous Amos. It also includes confectionery brands like Jelly Belly, NERDS, and Trolli, as well as frozen treat brands like Blue Bunny, Bomb Pop, and Halo Top.
The company said it plans to “invest and grow” Kellogg’s brands. When it split, its projected sales for 2024 were US$2.7 billion and its main goal was to modernise its supply chain to improve competitiveness, profitability, and cash flow.
Ferrero Group chair, Giovanni Ferrero, said the acquisition was two companies with proud legacies and generations of loyal consumers coming together.
“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 US. Today's news is a key milestone in that journey, giving us confidence in the opportunities ahead,” Ferrero said.
WC Kellog Co chair and CEO, Gary Pilnick, said since becoming an independent company in October 2023, it had made “excellent progress” on becoming a “more focused and more profitable business”.
“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,” Pilnick said.
Ferrero Group CEO, Lapo Civiletti, said, “Enhancing our portfolio with these complementary household brands marks an important step towards expanding Ferrero’s presence across more consumption occasions and reinforces our commitment to delivering value to consumers in North America.”
