Parsippany-Based Sweets Company To Acquire Cereal Giant In $3B Deal

PARSIPPANY, NJ — A major deal in the sweets industry is underway, after a Parsippany-based treat company announced it will acquire a major cereal brand.

Ferrero is an Italian company whose North American headquarters are located in Parsippany. Many may be familiar with its brands, including Nutella, Keebler, Jelly Belly, Tic Tac, and more.

The company has struck a deal to acquire Kellogg’s, the food company known for breakfast cereals such as Frosted Flakes, Froot Loops, Frosted Mini-Wheats, and several others.

Ferrero has agreed to purchase Kellogg’s shares at $23 per share in cash, representing a total enterprise value of $3.1 billion.

The deal comes two years after Kellogg's finalized the separation of its North American cereal business, creating two independent, public companies – Kellanova and WK Kellogg Co.

The deal is part of Ferrero’s effort to “acquire, invest in, and grow iconic brands as it continues to enhance its overall footprint and product offerings in North America.”

"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. “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. Today's news is a key milestone in that journey, giving us confidence in the opportunities ahead."

Ferrero calls Kellogg’s a “renowned” brand and “a leader shaping the future of breakfast.”

According to Ferrero representatives, the Kellogg’s headquarters in Battle Creek, Michigan, will “remain a core location for the company and will be Ferrero’s headquarters for North America cereal.”

“We believe this proposed transaction maximizes value for our share owners and enables WK Kellogg Co to write the next chapter of our company’s storied legacy,” said Gary Pilnick, Chairman and CEO of WK Kellogg Co. “Joining Ferrero will provide WK Kellogg Co with greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market…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.”