Ferrero acquires WK Kellogg for $3.1 billion
Deal News | Jul 10, 2025 | Finance Community IT - 1 Corporate M&A
Ferrero Group has agreed to acquire WK Kellogg Co for $3.1 billion, aligning with its strategic growth plan. The acquisition includes WK Kellogg's breakfast cereal portfolio in the US, Canada, and the Caribbean. Ferrero was advised by Lazard and BofA Securities, with Davis Polk & Wardwell as legal advisors. WK Kellogg was advised by Goldman Sachs, Morgan Stanley, and Kirkland & Ellis LLP. Ferrero aims to strengthen its North American presence by leveraging WK Kellogg's iconic brands, such as Kellogg’s Frosted Flakes and Froot Loops. The deal, unanimously approved by WK Kellogg's Board, needs shareholder and regulatory approvals and is expected to close in the second half of 2025. The WK Kellogg Foundation Trust and the Gund family have pledged support for the transaction. Giovanni Ferrero stressed the acquisition's value in uniting two companies with historical significance and loyal consumer bases. WK Kellogg's CEO, Gary Pilnick, believes the merger will enhance resources and flexibility, aligning with Kellogg's business focus and profitability goals.
Sectors
- Food and Beverage
- Mergers and Acquisitions
Geography
- United States – The acquisition involves WK Kellogg's operations, which are prominent in the US market.
- Italy – Ferrero, the acquiring company, is headquartered in Italy.
- Canada – The article mentions the inclusion of Canada in WK Kellogg's market operations, relevant to the deal.
Industry
- Food and Beverage – The article focuses on the acquisition of WK Kellogg Co's cereal portfolio, a significant part of the food and beverage industry.
- Mergers and Acquisitions – The article discusses the acquisition deal between Ferrero and WK Kellogg Co, which falls under the mergers and acquisitions sector.
Financials
- 3.1 billion USD – Total enterprise value of the acquisition deal for WK Kellogg Co.
- 23 USD per share – Offer price per share in the acquisition of WK Kellogg Co.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Ferrero Group | Acquirer | Company | An Italian multinational company known for its iconic confectionery products. |
| WK Kellogg Co | Target | Company | A company with a long history as a leader in breakfast cereals. |
| Lazard | Financial Advisor | Company | Provided primary financial advisory services to Ferrero. |
| BofA Securities | Co-Financial Advisor | Company | Acted as a co-advisor to Ferrero in the transaction. |
| Davis Polk & Wardwell | Legal Advisor | Company | Served as legal advisors to Ferrero. |
| Goldman Sachs & Co. | Financial Advisor | Company | Provided financial advice to WK Kellogg Co. |
| Morgan Stanley | Financial Advisor | Company | Also acted as a financial advisor to WK Kellogg Co. |
| Kirkland & Ellis LLP | Legal Advisor | Company | Provided legal counsel to WK Kellogg Co. |
| Giovanni Ferrero | Executive Chairman | Person | Executive Chairman of Ferrero Group. |
| Gary Pilnick | CEO | Person | President and CEO of WK Kellogg Co. |
| Lapo Civiletti | CEO | Person | CEO of Ferrero Group. |
| WK Kellogg Foundation Trust | Shareholder | Entity | Holder of significant shares in WK Kellogg Co. |
| Gund Family | Shareholder | Entity | Significant shareholders in WK Kellogg Co. |