Done deal: WK Kellogg now a subsidiary of Ferrero

It’s a speedy transaction by any measure. The Ferrero Group first announced plans to acquire cereal giant WK Kellogg Co in July. The transaction was approved by Kellogg shareowners in September, and just two weeks later, the deal’s been done. WK Kellogg, now wholly owned by Ferrero, has ceased trading – and is no longer listed on the New York Stock Exchange. For Ferrero, the acquisition expands its presence in snacks, and importantly, its geographical presence in North America. WK Kellogg is known for its iconic cereal portfolio, which boasts household names like Froot Loops, Special K, and Raisin Bran. The acquisition represents the “next chapter” in Ferrero’s strategy to acquire, invest in and grow iconic brands in North America, notes the company in a statement. “Ferrero plans to invest in and grow WK Kellogg Co’s iconic portfolio of brands across the United States, Canada and the Caribbean.” From WK Kellogg’s side, so far the move is wholly positive. Since The Kellogg Company split in two – Kellanova and WK Kellogg Co – the latter has been struggling. At the time of the acquisition announcement, the company was carrying half a billion dollars of debt. It’s no surprise shareowners jumped at the opportunity of a buyout. Earlier this month, 93% voted in favour of the merger – a landslide result. And it’s not just beneficial for shareowners. WK Kellogg employees too are celebrating the news. Raisin Bran and Frosted Mini-Wheats brand manager JP Severin admits that “change is always a challenge”, but believes the merger is a “tremendous” opportunity to honour the company’s history while growing in “powerful new ways”. The move brings global resources to fuel innovation and continued commitment to WK Kellogg’s iconic cereals, he writes on social media platform LinkedIn. Another boon for employees is that they won’t need to relocate: the business will continue to operate out of Battle Creek, Michigan. As for what’s next, rumours are circling about brand collaborations. While Ferrero comes from a confectionery background, and continues to play heavily in that space, bets are on for healthier mash-ups – at least to begin with. Nutella-flavoured cereals are possible, but with health trends on the rise, it may be more likely that cereal-inspired flavours find their way into Ferrero’s snacks and sweets.