Boxes of various Kellogg’s cereals are displayed on shelves at a Walmart Supercenter on May 6, 2025 in Austin, Texas.
Brandon Bell | Getty Images
Chocolate maker Ferrero has agreed to buy cereal giant WK Kellogg in a deal valued at $3.1 billion.
Shares of WK Kellogg soared 30% in premarket trading on the announcement. Excluding Thursday’s stock move, shares have fallen more than 2% this year, dragging the company’s market value down to about $1.5 billion.
WK Kellogg, which makes U.S. childhood staples such as Froot Loops and Frosted Flakes, spun off into a standalone company in 2023 as Kellogg sought to focus more on its growing snack business and divest from the sleepy cereal category. Kellogg renamed itself to Kellanova, which now houses snack brands such as Pringles and Cheez-It. M&M owner Mars agreed to buy Kellanova for $36 billion last year in a deal that has not yet closed.
A Ferrero acquisition of WK Kellogg adds to consolidation in packaged foods. Many American consumers have shunned sugary cereals in favor of breakfast options considered healthier, and other shoppers moved to private label brands after inflation spiked in recent years.
The move deepens Ferrero’s ambitions in the U.S. market. The third-largest U.S. candy company in May announced a new slate of products to appeal to American consumers, including peanut Nutella and Dr Pepper Tic Tacs.
“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.,” Ferrero Group executive chair Giovanni Ferrero said in a statement. “Today’s news is a key milestone in that journey, giving us confidence in the opportunities ahead.”
