In one of the most significant acquisitions in the food industry, Italian food giant Ferrero has acquired American cereal giant Kellogg's for $3.1 billion (£2.3 billion), making popular food brands such as Kellogg's Frosted Flakes, Rice Krispies, Froot Loops, Kashi, Special K, Kellogg's Raisin Bran, and Bear Naked now part of the Italian company, diversifying its brands globally.
Ferrero's Growth Across Key Markets
In a press release from Ferrero, it stated that their acquisition of Kellogg's breakfast cereals business in the US, Canada, and the Caribbean supports its strategic growth plan by adding iconic, trusted brands to its portfolio and expanding its reach into new consumption occasions.
This deal continues Ferrero's track record of acquiring and growing well-known brands to strengthen its North American presence. For context, the company now employs over 14,000 people across 22 plants and 11 offices in the region.
Moreover, Ferrero's North American lineup includes Nutella, Kinder, Tic Tac, Ferrero Rocher, Butterfinger, Keebler, Famous Amos, Jelly Belly, NERDS, Trolli, Blue Bunny, Bomb Pop, and Halo Top.
Investment in Food Brands
Building on its history of successful US acquisitions, Ferrero plans to invest in and grow these beloved cereals, honouring Kellogg's 120-year legacy as a breakfast pioneer.
For Executive Chairman Giovanni Ferrero, the deal is a milestone that unites two companies with rich histories and loyal consumers.
'Over recent years, Ferrero has expanded its presence in North America, bringing together well-known brands from around the world with local jewels rooted in the US. Today's news is a key milestone in that journey, giving us confidence in the opportunities ahead,' he said.
With this move, Ferrero strengthens its North American expansion, combining its global brands with American favourites and reinforcing its commitment to growth and innovation in the breakfast category.
Writing The Next Chapter
Gary Pilnick, Chairman and CEO of WK Kellogg Co, said the proposed deal 'maximises value for our shareowners' and lets the company 'write the next chapter' of its legacy. Since becoming independent in October 2023, Kellogg has strengthened its focus and profitability.
Moreover, Pilnick said joining Ferrero brings 'greater resources and more flexibility' to grow its iconic brands, praising Ferrero's family-owned values and community support.
'As a family-owned private company with values in line with our founder, W.K. Kellogg, Ferrero provides an excellent home for our people and has a track record of supporting the communities in which it operates. We look forward to collaborating with their team to deliver on the great promise of cereal, explore opportunities beyond cereal, and help us bring our best to consumers every day, he explained.
Meanwhile, CEO Lapo Civiletti of Ferrero Group called WK Kellogg Co. a trusted company with beloved brands, adding that the deal expands Ferrero's portfolio and reinforces its promise to deliver value to North American consumers.
Financials of Kellogg's Versus Ferrero
In Q1 2025, WK Kellogg Co reported revenues of $667 million (£493.89 million), down 6.2% year-over-year, with underlying profit dropping to $18 million (£13.33 million) or $0.20 (£0.15) EPS, missing expectations.
By contrast, Ferrero's fiscal year 2023/2024 saw a €18.4 billion (£15.94 billion) turnover—an 8.9% increase—with €958 million (£829.70 million) invested in capex.
Ferrero's strong revenue growth and robust investment capacity stand in sharp contrast to WK Kellogg Co's recent revenue declines and slimmer profits. This financial gap highlights why the merger makes strategic sense: Ferrero's healthy balance sheet and global scale can inject much-needed capital and operational support into WK Kellogg Co.'s iconic but mature cereal brands.
Ultimately, Ferrero's financial strength positions it to revitalise and grow these legacy brands, while WK Kellogg Co benefits from greater resources and long-term stability under new ownership.
