The parent company of popular brands such as Nutella and Butterfinger has purchased one of the quintessential breakfast brands in a multi-billion-dollar deal.
Ferrero Group has signed a deal to take WK Kellogg private in an agreement worth $3.1 billion, The Associated Press reported.
Kellogg owns brands such as Fruit Loops, Special K, Frosted Flakes and Rice Krispies.
The cereal producer is valued at $1.5 billion and is more than $500 million in debt, according to The Wall Street Journal, which broke the story on Wednesday.
The Ferrero Group will pay $23 for each Kellogg share and will include the manufacturing, marketing and distribution of the cereal in the U.S, Canada and the Caribbean, the AP said.
The deal should get approval from Kellogg shareholders with it expected to close later in the year. Once the deal is closed, Kellogg will no longer be a publicly traded company on the New York Stock Exchange.
The Kellogg company was founded by Will Keith Kellogg who developed Corn Flakes cereal in 1894 by accident, The Wall Street Journal said. The Ferrero Group was founded in Italy three generations ago in Alba, growing into a company with products sold in more than 170 countries. It is still family-owned.
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