Snap, Crackle, Sale: Nutella Maker Ferrero plans to buy WK Kellogg for $ 3 billion

Italian sweets Ferrero, known as brands such as Nutella Winer Wk kelogg In an attempt to expand its sales in North America.

The Ferrero Group said on Thursday that it will pay $ 23 per share of Kellogg, or about $ 3.1 billion. The deal includes the six manufacturing factories in WK Kelogg, marketing and distribution Breakfast pills Through the United States, Canada and the Caribbean Sea region.

The shares of WK Kelogg increased by 31 percent early on Thursday.

Kelogg was founded in Battle Creek, Michigan, in 1906 after its founder accidentally discovered how to make inverted grains while trying the granola. Kelleogg still makes corn flakes, as well as FROOT, K Special, Frosted Flakes, Rice Krispies and other grains.

Kelogg now has four American plants, located in Michigan, Pennsylvania, Tennessee and Nipraska. It also has a plant in Mexico and a factory in Canada. The company has about 3000 employees.

The current company was formed in 2023, when Kelogg Snack brands such as Cheez-3 and PRINCLES were woven into a separate company called Kellanova. M & M’s Maker Mars Inc. Announced last year She planned to buy Kelanova in a deal worth about $ 30 billion.

Ferrero Group, founded in Italy in 1946, is trying to expand its American scope. In 2018 Buy Nestle’s US Candy brandsIncluding butterfinger, obsessive and sweet. In 2022 Buy Wells EnverprisesIce Cream brand makers like Blue Bunny and Halo Top.

WK Kelogg brands struggle with a long -term drop in American pimples consumption When consumers turned into protein bars, shake and other breakfast elements. Ceream sales got a stumbling block during the Koronavirus virus in which more families remained at home, but sales continued to decrease after dilution of the epidemic.

At the beginning of July, cold grain sales in the United States decreased by 6 percent compared to the same period in 2022, according to Nielsen IQ Market Research. The net sales of Kilog decreased by 2 percent to $ 2.7 billion in 2024.

Brad Haller, a great partner in the merger and acquisitions in West Monroe, said that the large distribution network in Kelog and relations with grocery chains in North America is attractive to Ferrero because it will help the European company negotiate prices and sites for its products.

Haller said the purchase also helps to expand beyond snacks, sweets and to a meal category. But the company may also finish the Kellogg brands or the closure of manufacturing factories.

Halller said: “As Americans, these brands are distinct and loved by us, but the European company you buy will not have the same nostalgia.”

Kilogi was other issues. almost Three -month strike By workers in all American grain factories in late 2021 hurt sales. And last fall, Dozens of people gathered Outside the headquarters of the company, Battle Creek demands Kellogg to remove artificial dyes from its pills.

Earlier this year, Kelog said it was Reding pills Schools are sold to remove artificial dyes and will not include them in any new products that start in January.

The Ferrero acquisition, which still needs approval from Kellogg shareholders, is expected to be closed in the second half of the year. Once the treatment will not be traded, Kelogg shares will not be traded on the New York Stock Exchange and the company will become a Ferrero sub -company.