Nutella’s Parent to Acquire US Cereal Giant Kellogg’s

The Italian conglomerate first entered the American market in 1969, and today houses some of the most iconic brands.

Jars of Nutella are displayed on a shelf at a market iin San Francisco, Calif. Justin Sullivan/Getty Images

Italy-based food corporation Ferrero will buy out breakfast cereal company WK Kellogg Co. to further its expansion in the North American market, according to a July 10 statement from Ferrero.

Ferrero has agreed to acquire WK Kellogg Co. for $23 per share in cash, representing a total enterprise value of $3.1 billion, said the statement. The deal includes the manufacturing, marketing, and distribution of WK Kellogg Co.’s iconic portfolio of breakfast cereals across the United States, Canada, and the Caribbean.

WK Kellogg is trading at $22.84, as of July 10, 12:15 p.m. ET, an increase of more than 28 percent since July 9.

“I am thrilled to welcome WK Kellogg Co. to the Ferrero Group. This is more than just an acquisition—it represents the coming together of two companies, each with a proud legacy and generations of loyal consumers,” said Giovanni Ferrero, executive chairman of the Ferrero Group.

Ferrero North America, along with affiliated companies, employs more than 14,000 employees across 22 facilities and 11 offices. Some of the popular Ferrero brands are Nutella, Kinder, Tic Tac, Ferrero Rocher, Butterfinger, Blue Bunny, Jelly Bean, Keebler, Trolli, Baby Ruth, and Bomb Pop.

Kellogg’s brands include Corn Flakes, Fruit Loops, Rice Krispies, Corn Pops, Frosted Flakes, and Raisin Bran.

Started in 1894, Kellogg’s is based in Michigan and employs fewer than 5,000 workers.

Ferrero has made many significant acquisitions in the United States in the past few years. It bought out, for example, Fannie May chocolate maker and Ferrara candy company in 2017; Kellogg’s cookie and snack businesses in 2019; Blue Bunny ice cream brand in 2019; and snack company Power Crunch earlier this year.

“Upon the successful completion of the transaction, shares of WK Kellogg Co.’s common stock will no longer trade on the New York Stock Exchange, and the company will become a wholly owned subsidiary of Ferrero,” said the statement, adding that the agreement has been unanimously approved by the WK Kellogg director board, but subject to approval by the company’s share-owners and regulators. The transaction is expected to close in the second half of 2025.

“Joining Ferrero will provide WK Kellogg Co. with greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market,” said Gary Pilnick, chairman and CEO of WK Kellogg Co.

Impact of Tariffs

According to Kellogg’s first-quarter 2025 financial statement published on May 6, the company reported a decrease of 6.2 percent in net sales year over year.

The net income was down 45 percent annually, with the company lowering organic net sales growth expected in 2025 to negative 2 to  negative 3 percent from negative 1 percent.

Kellogg noted the impact of tariffs and the ongoing economic uncertainty affecting the company’s bottom line in the financial statement.

“Our 2025 financial outlook now includes a modest impact from tariffs, primarily related to the sourcing of raw materials outside of North America, and assumes that most of our production remains exempt from tariffs on imports from and exports to Canada and Mexico. However, there can be no assurance that this suspension will remain in place indefinitely or whether any new or expanded tariffs may further impact our business and results of operations,” the company said.

David McKinstray, Kellogg’s CFO, said in a prepared statement on the first-quarter earnings call: “Our EBITDA [earnings before interest, taxes, depreciation, and amortization] guidance also reflects our current tariff exposure on ingredients that are imported into the U.S. Based on the tariffs currently in place we expect this impact to be between $2–4 million for the full year. We continue to monitor the situation and this impact could change should there be any new tariffs imposed or a change to existing tariffs.”

The U.S. government is currently negotiating a series of tariffs with countries around the world based on their existing trade barriers with the United States.

The Trump administration has insisted that companies move manufacturing back to the United States and has given trade partners an Aug. 1 deadline for concluding deals, failing which, the United States will place tariffs based on existing barriers.