Ferrero has confirmed the confectionery large has entered an settlement with WK Kellogg to amass the US-based breakfast cereals enterprise for $3.1bn.
The acquisition value is a tad over the $3bn speculated yesterday (9 July) in media reviews, quoting unnamed sources, {that a} deal was imminent.
Ferrero stated in an announcement the takeover of WK Kellogg, in a deal struck for $23 a share, is predicted to shut someday within the present second half and is topic to regulatory approvals and clearance by shareholders of the North American cereals producer.
The Italy-based Ferrero Rocher and Nutella maker added the transaction covers WK Kellogg’s “famend beloved manufacturers” within the US, Canada and the Caribbean akin to Froot Loops, Particular Okay, Rice Krispies and Raisin Bran.
Giovanni Ferrero, the chief chairman of privately owned Ferrero, stated: “That is extra than simply an acquisition – it represents the approaching collectively of two firms, every with a proud legacy and generations of loyal customers.
“Over latest years, Ferrero has expanded its presence in North America, bringing collectively our well-known manufacturers from world wide with native jewels rooted within the US.
The Kinder chocolate maker has lately struck offers for firms together with US ice-cream maker Wells Enterprises and the UK’s Burton’s Biscuit Firm.
Ferrero has additionally used M&A to construct its place within the US. In addition to the transfer for Wells, the early a part of this 12 months noticed the Tic Tac model proprietor purchase protein snacks maker Energy Crunch in California. That constructed on the 2024 deal for the US-based biscotti biscuits enterprise Nonni’s Bakery. Monetary phrases weren’t revealed for any of the transactions.
WK Kellogg was spun-off from the guardian Kellogg in 2023 because the enterprise cut up in two to create separate impartial public firms and is headed up by Kellogg government Gary Pilnick as chairman and CEO.
The opposite half of Kellogg – Kellanova, targeted on the remainder of the worldwide cereals enterprise outdoors North America, snacks akin to Pringles crisps and frozen breakfast meals – is within the throes of a $36bn takeover by privately owned confectioner Mars, inked final August.
Pilnick stated in as we speak’s assertion: “We consider this proposed transaction maximises worth for our shareowners and permits WK Kellogg Co. to write down the following chapter of our firm’s storied legacy.
“Becoming a member of Ferrero will present WK Kellogg Co. with larger assets and extra flexibility to develop our iconic manufacturers on this aggressive and dynamic market.”
Submit-transaction, WK Kellogg will proceed to function out of its Battle Creek, Michigan headquarters, which is able to turn out to be the bottom for Ferrero in North American breakfast cereal.
WK Kellogg will even be delisted from the New York Inventory Alternate as soon as the takeover is accomplished.
The shares within the cereals enterprise had been up 30% at $22.84 as of three:02pm BST in London, extending features yesterday when the hypothesis of a deal emerged.
WK Kellogg’s annual outcomes issued in February, the primary full 12 months for the reason that spin-off, confirmed gross sales and earnings had been beneath stress in 2024.
Reported gross sales fell 2% to $2.71bn and had been down 1.1% on an adjusted foundation.
EBITDA dropped 12.7% to $193m. Nevertheless, on an adjusted and “standalone” foundation, EBITDA climbed 3% and 6.6%, respectively, to $275m.
Nonetheless, web revenue plunged 34.5% to $72m and was down 9.1% in adjusted phrases at $149m. Diluted EPS slid to $0.82 from $1.28 a 12 months earlier.
Ferrero, in the meantime, which additionally owns the Keebler model, generated a turnover of €18.4bn ($21.5bn) within the 12 months ended 31 August, a rise of 8.9%, in accordance with its web site.
The corporate has 37 manufacturing crops and employs 47,000 individuals globally. It added as we speak that in North America the corporate now has greater than 14,000 employees throughout 22 services and 11 places of work.
Lapo Civiletti, the CEO of Ferrero, stated the transaction with WK Kellogg “marks an essential step in direction of increasing Ferrero’s presence throughout extra consumption events and reinforces our dedication to delivering worth to customers in North America”.
Forward of its second-quarter outcomes due on 5 August, WK Kellogg supplied some preliminary figures as we speak.
For the quarter to twenty-eight June, the corporate expects web gross sales to be within the vary of $610-615m and adjusted EBITDA of $43-48m.
Ferrero has confirmed the confectionery large has entered an settlement with WK Kellogg to amass the US-based breakfast cereals enterprise for $3.1bn.
The acquisition value is a tad over the $3bn speculated yesterday (9 July) in media reviews, quoting unnamed sources, {that a} deal was imminent.
Ferrero stated in an announcement the takeover of WK Kellogg, in a deal struck for $23 a share, is predicted to shut someday within the present second half and is topic to regulatory approvals and clearance by shareholders of the North American cereals producer.
The Italy-based Ferrero Rocher and Nutella maker added the transaction covers WK Kellogg’s “famend beloved manufacturers” within the US, Canada and the Caribbean akin to Froot Loops, Particular Okay, Rice Krispies and Raisin Bran.
Giovanni Ferrero, the chief chairman of privately owned Ferrero, stated: “That is extra than simply an acquisition – it represents the approaching collectively of two firms, every with a proud legacy and generations of loyal customers.
“Over latest years, Ferrero has expanded its presence in North America, bringing collectively our well-known manufacturers from world wide with native jewels rooted within the US.
The Kinder chocolate maker has lately struck offers for firms together with US ice-cream maker Wells Enterprises and the UK’s Burton’s Biscuit Firm.
Ferrero has additionally used M&A to construct its place within the US. In addition to the transfer for Wells, the early a part of this 12 months noticed the Tic Tac model proprietor purchase protein snacks maker Energy Crunch in California. That constructed on the 2024 deal for the US-based biscotti biscuits enterprise Nonni’s Bakery. Monetary phrases weren’t revealed for any of the transactions.
WK Kellogg was spun-off from the guardian Kellogg in 2023 because the enterprise cut up in two to create separate impartial public firms and is headed up by Kellogg government Gary Pilnick as chairman and CEO.
The opposite half of Kellogg – Kellanova, targeted on the remainder of the worldwide cereals enterprise outdoors North America, snacks akin to Pringles crisps and frozen breakfast meals – is within the throes of a $36bn takeover by privately owned confectioner Mars, inked final August.
Pilnick stated in as we speak’s assertion: “We consider this proposed transaction maximises worth for our shareowners and permits WK Kellogg Co. to write down the following chapter of our firm’s storied legacy.
“Becoming a member of Ferrero will present WK Kellogg Co. with larger assets and extra flexibility to develop our iconic manufacturers on this aggressive and dynamic market.”
Submit-transaction, WK Kellogg will proceed to function out of its Battle Creek, Michigan headquarters, which is able to turn out to be the bottom for Ferrero in North American breakfast cereal.
WK Kellogg will even be delisted from the New York Inventory Alternate as soon as the takeover is accomplished.
The shares within the cereals enterprise had been up 30% at $22.84 as of three:02pm BST in London, extending features yesterday when the hypothesis of a deal emerged.
WK Kellogg’s annual outcomes issued in February, the primary full 12 months for the reason that spin-off, confirmed gross sales and earnings had been beneath stress in 2024.
Reported gross sales fell 2% to $2.71bn and had been down 1.1% on an adjusted foundation.
EBITDA dropped 12.7% to $193m. Nevertheless, on an adjusted and “standalone” foundation, EBITDA climbed 3% and 6.6%, respectively, to $275m.
Nonetheless, web revenue plunged 34.5% to $72m and was down 9.1% in adjusted phrases at $149m. Diluted EPS slid to $0.82 from $1.28 a 12 months earlier.
Ferrero, in the meantime, which additionally owns the Keebler model, generated a turnover of €18.4bn ($21.5bn) within the 12 months ended 31 August, a rise of 8.9%, in accordance with its web site.
The corporate has 37 manufacturing crops and employs 47,000 individuals globally. It added as we speak that in North America the corporate now has greater than 14,000 employees throughout 22 services and 11 places of work.
Lapo Civiletti, the CEO of Ferrero, stated the transaction with WK Kellogg “marks an essential step in direction of increasing Ferrero’s presence throughout extra consumption events and reinforces our dedication to delivering worth to customers in North America”.
Forward of its second-quarter outcomes due on 5 August, WK Kellogg supplied some preliminary figures as we speak.
For the quarter to twenty-eight June, the corporate expects web gross sales to be within the vary of $610-615m and adjusted EBITDA of $43-48m.
