Ferrero Group is buying WK Kellogg Co. for roughly $3 billion. The deal will see the parent company of several candy bar and snack brands add a collection of well-known breakfast cereals to its holdings, including Raisin Bran, Froot Loops, and Corn Flakes.
The creator of a number of breakfast-table staples is getting a new owner as Ferrero Group and WK Kellogg Co. have announced a deal that will see Kellogg folded into the corporate parent of such brands as Nutella, Tic Tac, Butterfinger, Baby Ruth, Famous Amos, and Bomb Pop.
The deal, worth roughly $3 billion, will expand Ferrero’s footprint in the North American market.
Kellogg, of course, is the company that invented Corn Flakes, which revolutionized the breakfast market. Its other well-known brands include Froot Loops, Raisin Bran, Rice Krispies, and Frosted Flakes.
“We believe this proposed transaction maximizes value for our shareowners and enables WK Kellogg Co. to write the next chapter of our company’s storied legacy,” said Gary Pilnick, chairman and CEO of WK Kellogg Co., in a statement. “Joining Ferrero will provide WK Kellogg Co. with greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market.”
Ferrero, founded nearly 80 years ago in Italy, says it plans to invest in and grow the Kellogg brands. The company has been on something of a buying spree in the U.S. recently as it looks to grow into more of a global business. Other recent takeovers have included Blue Bunny ice cream parent Wells Enterprises and the U.S. confectionery business of Nestlé.
“Over recent years, Ferrero has expanded its presence in North America, bringing together our well-known brands from around the world with local jewels rooted in the U.S.,” said Giovanni Ferrero, executive chairman of the Ferrero Group. “Today’s news is a key milestone in that journey, giving us confidence in the opportunities ahead.”
This story was originally featured on Fortune.com
