Bins of assorted Kellogg’s cereals are displayed on cabinets at a Walmart Supercenter on Could 6, 2025 in Austin, Texas.
Brandon Bell | Getty Photographs
Chocolate maker Ferrero has agreed to purchase cereal big WK Kellogg in a deal valued at $3.1 billion.
WK Kellogg, which makes U.S. childhood staples similar to Froot Loops and Frosted Flakes, spun off right into a standalone firm in 2023. A separate publicly traded enterprise, Kellanova, now homes snack manufacturers similar to Pringles and Cheez-It. M&M proprietor Mars agreed to purchase Kellanova for $36 billion final yr in a deal that has not but closed.
WK Kellogg shares have fallen about 2% this yr, and the corporate has a roughly $1.5 billion market cap.
A Ferrero acquisition of WK Kellogg provides to consolidation in packaged meals. Many American shoppers have shunned sugary cereals in favor of breakfast choices thought-about more healthy, and different consumers moved to non-public label manufacturers after inflation spiked lately.
The transfer deepens Ferrero’s ambitions within the U.S. market. The third-largest U.S. sweet firm in Could introduced a brand new slate of merchandise to attraction to American shoppers, together with peanut Nutella and Dr Pepper Tic Tacs.
