Ferrero Group is set to acquire WK Kellogg Co for $23.00 per share, totaling $3.1 billion, as part of its strategy to diversify and grow in the breakfast cereal market.

Target Company Overview

WK Kellogg Co (NYSE: KLG) is a prominent player in the breakfast cereal industry, known for its extensive portfolio of beloved brands such as Kellogg’s Frosted Flakes®, Froot Loops®, Frosted Mini Wheats®, Special K®, and Rice Krispies®. The company not only manufactures but also markets and distributes these iconic cereals across key markets including the United States, Canada, and the Caribbean. The proposed acquisition by the Ferrero Group reflects the significant value and market presence of WK Kellogg Co.

The deal entails a purchase price of $23.00 per share in cash, leading to a total enterprise value of approximately $3.1 billion. The transaction received unanimous approval from WK Kellogg Co's Board of Directors and is pending the approval of shareholders and necessary regulatory clearances. Expected to close in the latter half of 2025, the agreement is supported by key shareholders who have committed to vote in favor of the acquisition.

Industry Overview in the United States

The breakfast cereal industry in the United States is a significant market, characterized by high consumer demand and aggressive competition among major brands. As consumers increasingly prioritize convenience and n