The old grain giant of the century Kellogg is becoming Italian by selling Ferrero to $ 3.1 billion

Ferrero Group will pay for each Kellogg share or about $ 3.1 billion on Thursday. In the operation, WK Kellogg Co. includes six production plant and marketing and distribution Breakfast cereals Throughout the US, Canada and the Caribbean.

WK Kellogg’s shares increased by 31% on Thursday afternoon.

Kellogg, Battle Creek, founded in 1906, the founder of the founder in 1906, the grain of whining with Granola, he realized. Kellogg still makes corn flakes, but also brushing loops, special k, frosty flakes, rice crispies and other cereals.

Kellogg has four US plants located in Michigan, Pennsylvania, Tennessee and Nebraska. There is also a plant in Mexico and a plant in Canada. The company has about 3,000 employees.

The current company was established in 2023, Kellogg snack brands such as Kellogg snack brands and Pringles were called Kellanova. M & M’s Maker Mars Inc. Announced last year Keylanova planned to take about $ 30 billion.

Founded in Italy in 1946, the Ferrero group, trying to expand US scars. In 2018 Purchased Nestle’s US Candy Brandsincluding butterfly, nerds and sweets. And in 2022 Purchased wellsThe manufacturer of ice cream stamps like blue bunny and Halo top.

WK Kellogg brands fighting a long-term decline US grain consumption For consumers face protein bars, vibrations and other breakfast items. Grain sales took a blow during the Coronavirus pandemic because they stay at home in the house, but after relieving the pandem continued to decrease.

In early July, the United States’s cold grain sales decreased by 6% compared to the same period in 2022 and 6% compared to the same period of Nielsen IQ. Kellogg’s net sales fell to $ 2.7 billion in 2024 to $ 2.7 billion.

Brad Haller, a large partner for merger and procurement in Western Monroe, Kellogg’s relations with large distribution networks and food chains in North America will help you to negotiate for the prices and position for the European company.

Purchase helps to expand outside the Ferraro’s snacks and sweets and food categories. However, the company can also burn Kellogg brands by shutting down plants.

“Like Americans, these brands are our pride and loved ones, but a European company that bought them will not be the same nostalgia,” he said.

Kellogg has other issues. About one Three monthly holidays In the late 2021, all US grain crops are sold by employees by employees. And the last fall, Dozens of people rally Outside the company’s Battle Creek headquarters that require Kellogg’s grain to eliminate artificial paints.

Kellogg in the beginning of this year said it was Grain-shaped cereal For sale to schools to eliminate artificial paints, and will not be included in any new product that starts in January.

The acquisition of Ferrero in need of Kellogg shareholders is still expected to be closing in the second half of the year. Upon completion of the operation, Kellogg’s fund will no longer trade on the New York Exchange and the company will be a ferrero subsidiary.