Snap, crackle, sale: Nutella maker Ferrero plans to purchase WK Kellogg for $3 billion

Italian confectioner Ferrero, recognized for manufacturers like Nutella and Kinder, is shopping for the century-old U.S. cereal firm WK Kellogg in an effort to broaden its North American gross sales.

The Ferrero Group stated on Thursday (July 10, 2025) it is going to pay $23 for every Kellogg share, or roughly $3.1 billion. The transaction consists of the manufacturing, advertising and distribution of WK Kellogg Co’s portfolio of breakfast cereals throughout the United States, Canada and the Caribbean.

WK Kellogg’s shares have been up 31% in morning buying and selling on Thursday.

Kellogg was based in Battle Creek, Michigan, in 1906 after its founder by chance found out make flaked cereal whereas he was experimenting with granola. Kellogg nonetheless makes Corn Flakes, in addition to Froot Loops, Special Okay, Frosted Flakes, Rice Krispies and different cereals.

The present firm was shaped in 2023, when Kellogg’s snack manufacturers like Cheez-Its and Pringles have been spun right into a separate firm known as Kellanova. M&M’s maker Mars Inc introduced final 12 months that it deliberate to purchase Kellanova in a deal price almost $30 billion.

Ferrero Group, which was based in Italy in 1946, has been making an attempt to broaden its U.S. footprint. In 2018 it purchased Nestle’s U.S. sweet manufacturers, together with Butterfinger, Nerds and SweeTarts. And in 2022 it purchased Wells Enterprises, the maker of ice cream manufacturers like Blue Bunny and Halo Top.

WK Kellogg’s manufacturers have been combating a long-term decline in U.S. cereal consumption as shoppers turned to protein bars, shakes and different breakfast gadgets. Cereal gross sales bought a bump through the pandemic as extra households stayed dwelling, however gross sales continued to say no after the pandemic eased.

At the beginning of July, U.S. chilly cereal gross sales have been down 6% in comparison with the identical interval in 2022.

But Brad Haller, a senior associate for mergers and acquisitions at West Monroe, stated Kellogg’s massive distribution community and relationship to grocers is interesting to Ferrero, since it is going to assist Ferrero negotiate pricing and positioning for its merchandise. The buy additionally helps Ferraro broaden past snacks and sweets and right into a meal class, he stated.

But Mr. Haller stated Ferrero could look with a extra essential eye on Kellogg’s secure of manufacturers and will wind up slicing manufacturers or shutting down manufacturing crops.

“As Americans, these manufacturers are iconic and beloved by us, however a European firm shopping for these would not have the identical nostalgia,” Mr. Haller stated.

Kellogg has had different points. An almost three-month strike by employees in any respect its US cereal crops in late 2021 damage gross sales. And final fall, dozens of individuals rallied exterior the corporate’s Battle Creek headquarters demanding that Kellogg take away synthetic dyes from its cereals.

Earlier this 12 months, Kellogg stated it was reformulating cereals offered to colleges to take away synthetic dyes and won’t embrace them in any new merchandise beginning in January.

Ferrero’s acquisition, which nonetheless wants approval from Kellogg shareholders, is predicted to shut within the second half of the 12 months. Once the transaction is full, Kellogg’s inventory will not commerce on the New York Stock Exchange and the corporate will turn into a Ferrero subsidiary.