Ferrero Rocher Owner to Acquire WK Kellogg in $3.1 Billion Deal, Uniting Iconic Brands Under One Roof
Ferrero Rocher Owner to Acquire WK Kellogg in $3.1 Billion Deal, Uniting Iconic Brands Under One Roof
Ferrero Group, the Italian confectionery giant behind popular products such as Ferrero Rocher, Nutella, Kinder, and Tic Tac, has announced it will acquire American cereal maker WK Kellogg in a $3.1 billion deal. This marks Ferrero’s largest acquisition in recent years and signals a major consolidation in the global packaged food industry.
The deal, confirmed on Thursday, offers WK Kellogg shareholders $23 per share — a 31% premium over the company’s closing stock price on Wednesday. Following the announcement, shares of WK Kellogg surged nearly 30% in pre-market trading to $22.70.
The acquisition will bring together a wide range of iconic consumer brands under one umbrella, including Nutella, Kinder, Tic Tac, Frosted Flakes, Froot Loops, and Special K.
WK Kellogg, which holds Kellogg’s former North American cereal business, was recently spun off from its parent company Kellanova. The move comes as packaged food companies like WK Kellogg face declining sales, with consumer spending in the U.S. weakening due to prolonged inflation and higher product prices. The industry has also been impacted by a growing shift toward healthier eating habits.
The acquisition by Ferrero is expected to strengthen the company’s presence in the North American market and diversify its product portfolio beyond confectionery. Analysts at Jefferies called the high premium “a surprise,” suggesting it would be difficult for any rival bidder to top the offer or for shareholders to reject the deal.
This transaction comes amid a wave of mergers in the food and snack sector. Kellanova — which retained ownership of brands like Cheez-It — is itself reportedly being acquired by Mars, the candy and pet food conglomerate, in a separate deal worth nearly $36 billion.
Ferrero, led by Executive Chairman Giovanni Ferrero, has been on an aggressive global expansion spree. In 2018, the company acquired Nestlé’s U.S. chocolate business for $2.8 billion. Ferrero reported annual revenues of €18.4 billion ($19.2 billion) for the financial year ending August 31, 2024, and has continued to invest heavily in manufacturing capacity and category expansion.
Meanwhile, food manufacturers in the U.S. are under growing pressure from health advocates and the federal government. The “Make America Healthy Again” commission, led by Health Secretary Robert F. Kennedy Jr., has called on packaged food companies to eliminate synthetic food dyes and other additives linked to health concerns.
The Ferrero-WK Kellogg deal is expected to close in the second half of 2025, pending regulatory approval and shareholder agreement.
