Italian confectioner Ferrero, the masterminds behind Nutella’s hazelnut hug, have snapped up WK Kellogg for a cool $3.1 billion. This deal, announced on July 10, 2025, means your morning bowl of Frosted Flakes might soon come with a side of Kinder surprise. Ferrero’s dishing out $23 per share, making shareholders’ wallets as happy as a kid with a spoonful of Nutella.
WK Kellogg, born in Battle Creek, Michigan, in 1906, is no stranger to the cereal aisle. The company’s lineup includes Froot Loops, Special K, and Rice Krispies, which snap, crackle, and pop their way into American hearts. Ferrero’s latest move adds these crunchy classics to its already sweet portfolio.
The market went wild, with WK Kellogg’s shares jumping 30% in premarket trading on Thursday. Investors are clearly thrilled about this sugary union. Who wouldn’t want their cereal bowl backed by the folks who make Tic Tacs?
Ferrero, founded in Italy in 1946, has been on a U.S. shopping spree. In 2018, they grabbed Nestle’s candy stash, including Butterfinger and Nerds, for $2.8 billion. Then, in 2022, they scooped up Wells Enterprises, home to Blue Bunny ice cream, because apparently Ferrero wants to own every snack in your pantry.
This deal isn’t just about cereal; it’s about Ferrero planting its flag deeper in North America. WK Kellogg’s manufacturing, marketing, and distribution networks across the U.S., Canada, and the Caribbean are now part of Ferrero’s empire. Imagine Nutella jars and Froot Loops boxes sharing shelf space in a grocery store near you.
WK Kellogg’s journey to this point has been a bit of a corporate soap opera. In 2023, the company split from its snack-loving sibling, Kellanova, which houses Pringles and Cheez-Its. Kellanova itself got a $30 billion buyout offer from Mars Inc. last year, proving the snack world is hungrier for deals than a toddler at a candy buffet.
Ferrero’s chairman, Giovanni Ferrero, must be grinning wider than a Kinder egg toy reveal. The company’s been eyeing the U.S. market for years, and this acquisition is their biggest bite yet. With 15 plants already in the U.S., Canada, and the Caribbean, Ferrero’s ready to churn out cereal alongside their chocolatey goodies.
Shareholders still need to give this deal a thumbs-up, and regulators will want a peek too. If all goes smoothly, WK Kellogg will vanish from the New York Stock Exchange by late 2025, becoming a Ferrero subsidiary. Battle Creek will remain a key hub, so don’t worry—your Corn Flakes won’t be shipped from Italy.
Why is Ferrero diving into cereal? The company sees WK Kellogg’s iconic brands as a chance to diversify beyond chocolate and hazelnut spreads. Analysts at CFRA Research noted this move helps Ferrero “deepen its presence in the U.S. market,” which sounds fancy but means they want your breakfast table real estate.
WK Kellogg hasn’t had an easy ride lately. The company’s sales dipped 2% in 2023, and net income took a 34.5% hit, according to The Grocer. With consumer spending tighter than a cereal box seal, Ferrero’s deep pockets could give these brands a much-needed sugar rush.
Social media’s buzzing with reactions. One X post called it a “sweet deal for shareholders but a bitter pill for cereal lovers,” hinting at fears of Nutella-flavored Froot Loops. Another user cheered Ferrero’s “smart move” to dominate the breakfast aisle, proving the internet’s got opinions on everything, even cereal takeovers.
This isn’t Ferrero’s first rodeo in the acquisition game. Their 2018 Nestle deal and 2022 Wells Enterprises buy show they’re not shy about splashing cash. The $3.1 billion price tag for WK Kellogg is roughly double the company’s $1.5 billion market value, making it a premium purchase that’s got investors crunching numbers with glee.
What’s next for your breakfast bowl? Ferrero’s promising to invest in WK Kellogg’s brands, so expect Frosted Flakes to stay frosty and Rice Krispies to keep popping. Whether they’ll sneak some hazelnut spread into the mix remains to be seen, but we’re betting on a Kinder surprise or two.
The deal’s expected to close in the second half of 2025, pending approvals. Until then, WK Kellogg’s 120-year legacy will keep chugging along, now with Ferrero’s chocolatey backing. Grab your spoon—this breakfast saga’s just getting started.
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