Kellogg's agrees to sale to Italian company Ferrero Rocher in $3.1B deal

telcodad

So, will Tony the Tiger now start saying “Sono gr-r-randiosi!” (They’re gr-r-reat!" in Italian)?

WK Kellogg, based in Battle Creek, agrees to sale to Ferrero Rocher in $3.1B deal
By Savyata Mishra and Aishwarya Venugopal, Reuters - July 10, 2025
https://www.freep.com/story/money/business/michigan/2025/07/10/battle-creek-based-wk-kellogg-agrees-to-sale-to-ferrero-rocher/84531210007/

WK Kellogg, the Battle Creek-based maker of cereals spun off from the original Kellogg Company, agreed to be bought by the owner of Ferrero Rocher in a deal worth around $3.1 billion, uniting two of the world’s most recognizable consumer brands to weather a tough spending backdrop marked by persistent inflation.

The companies said in an announcement released Thursday that “Ferrero traces its roots to humble beginnings as a family business, still operating in the town where they were founded. After the transaction closes, Battle Creek, MI will remain a core location for the company and will be Ferrero’s headquarters for North America cereal.”
:
The acquisition, Ferrero’s biggest since 2018, will bring legacy brands such as Nutella, Kinder, Tic Tac, Frosted Flakes, Froot Loops and Special K under one roof when the transaction closes, expectedly in the second half of 2025. ….

HELLFIRE

More pertinent question : when will Ferrero Rocher-flavored Frosted Flakes be on the market? Asking for a friend… 😆 😆 😆

/snark

Regards

px_eliezer_

Battle Creek history:

In May of 1982, Kellogg Co. threatened to move its headquarters unless the City of Battle Creek and Battle Creek Township merged. Township voters agreed by a 2-to-1 margin, and city voters a 10-to-1 margin, to incorporate the township into the city in November of 1983, causing the population to jump to 56,339.

A year and two days after the vote, Kellogg Co. broke ground on a $62.7 million corporate headquarters building in downtown Battle Creek.

https://www.battlecreekenquirer.com/story/news/2020/03/26/battle-creek-population-changed-census-annexation-township/2869046001/

Kellogg had issued an ultimatum, threatening to move their HQ out of Battle Creek unless the city and the township merged.

Lets hope this NEW merger will still be good for the local community.

A similar shotgun government merger happened in New Jersey in 2013, when Princeton Borough and Princeton Township combined. This was done under heavy pressure from Princeton University, but that merger worked quite well.

Dks01

Look at Mondelez for an idea of the future. They just killed off the Jersey Milk chocolate bar in Canada. Ferro Rocher will kill of unprofitable lines. Bye, Tony.

Bombtrad

I wonder whether Ferrero Rocher will now be able to dodge high tariffs on their Italian imports??

I even wonder whether this sale of US business to foreign buyers will get past the administration?? I thought everything had to be made in the USA or have its products tariffed out of the market.

Just wondering.

telcodad

Bombtrad I even wonder whether this sale of US business to foreign buyers will get past the administration??

Yeah:

The deal has been unanimously approved by WK Kellogg Co’s board and is expected to close in the second half of 2025, pending shareholder and regulatory approval.

telcodad

From: https://apnews.com/article/kellogg-ferrero-cereal-chocolate-fruit-loops-a148780f0abe5ee39f1c5450204e41e8

Kellogg has been struggling with a long-term decline in U.S. cereal consumption as consumers turned to protein bars, shakes and other breakfast items. Cereal sales got a bump during the coronavirus pandemic as more families stayed home, but sales continued to decline after the pandemic eased. At the start of July, U.S. cold cereal sales were down 6% compared to the same period in 2022, according to market research company Nielsen IQ. Kellogg’s net sales fell 2% to $2.7 billion in 2024.
:
The purchase also helps Ferraro expand beyond snacks, chocolate and sweets and into a meal category, Haller said. But the company also may wind up cutting Kellogg brands or shutting down manufacturing plants, he said.

Somewhat-Reticent

Tasty candy?