WK Kellogg Stock Pops as Ferrero Buys Cereal Giant for $3.1B

Shares of WK Kellogg (KLG) surged 30% Thursday as the maker of Froot Loops and Frosted Flakes announced it had reached a deal to be acquired by Italian sweets company The Ferrero Group for $23 per share in cash, or about $3.1 billion.

WK Kellogg stock had soared overnight on a report from The Wall Street Journal that the companies could finalize a deal “as soon as this week.” Shares were recently trading for $22.92—a level they hadn’t hit in more than a year as shifting attitudes towards diet and price increases in the category ate into cereal sales. The stock had entered Thursday trading slightly negative for 2025.

“We believe this proposed transaction maximizes value for our shareowners and enables WK Kellogg Co to write the next chapter of our company’s storied legacy,” CEO Gary Pilnick said, adding that joining Ferrero would provide the firm “with greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market.”

The transaction is expected to close in the second half of 2025. The New York Stock Exchange-listed cereal giant said once it does, it would become a privately held subsidiary of Ferrero, which has more than 14,000 employees in North America, where its portfolio includes Nutella, Tic Tac, and Butterfinger.

“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.,” Ferrero Group Executive Chairman Giovanni Ferrero said. “Today’s news is a key milestone in that journey, giving us confidence in the opportunities ahead.”

WK Kellogg emerged in 2023 when Kellogg split up its cereal lines and snack business, which became Kellanova (K).