I guess just more consolidation. Fererro bought Nestlé’s US candy business a few years ago.
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 Italian family-owned company has been on a North American buying spree in recent years, snapping up Nestle’s U.S. candy business and Halo Top owner Wells Enterprises, among others.
Ferrero, known for brands like Nutella and Butterfinger, is taking Michigan cereal giant WK Kellogg private in a deal valued at approximately $3.1 billion.
The Ferrero Group will pay $23 for each Kellogg share. The transaction includes the manufacturing, marketing and distribution of Battle Creek-based WK Kellogg Co.’s portfolio of breakfast cereals across the United States, Canada and the Caribbean.