WK Kellogg: America’s favorite cereals set for $3 billion foreign takeover

DailyMail

The Chicago-headquartered maker of Froot Loops and Frosted Flakes — is nearing a $3 billion deal to join forces with Italian confectionery giant Ferrero, according to the Wall Street Journal. 

The chocolatier has been on an acquisition spree since 2018. At the time, the Italian company bought multiple chocolate brands from Nestlé. 

The American cereal company’s May earnings report had some stinging numbers, including a 6.2 percent decline in sales.

Now, the new deal is an even deeper push into the American market for Ferrero, which recently announced new US-focused products including peanut Nutella and Dr Pepper-flavored Tic Tacs. 

Ferrero, the world’s third-largest candy company, already sells popular grocery products like Ferrero Rocher, Nutella, Keebler, and Butterfinger.

Meanwhile, WK Kellogg — which spun off from its parent company last year — has been struggling to regain momentum.

WK Kellogg brought in $663 million for the quarter, compared to $707 million in the same three-month period in 2024. 

‘We saw consumers continue to focus on health and nutrition,’ Gary Pilnick, the company’s CEO, said. 

‘We believe our portfolio is well positioned to meet the needs of our consumers, and we are taking further actions to accelerate our plans in this area.’ 

Shares of WK Kellogg’s spiked in after-hours trading following the news. 

The cereal-maker’s stock price jumped over 48 percent in the minutes after the reports. 

WK Kellogg and Ferrero did not immediately respond to DailyMail.com’s request for comment.