Italy-based food corporation Ferrero will buy out breakfast cereal company WK Kellogg Co. to further its expansion in the North American market, according to a July 10 statement from Ferrero.
Ferrero has agreed to acquire WK Kellogg Co. for $23 per share in cash, representing a total enterprise value of $3.1 billion, said the statement. The deal includes the manufacturing, marketing, and distribution of WK Kellogg Co.’s iconic portfolio of breakfast cereals across the United States, Canada, and the Caribbean.
WK Kellogg is trading at $22.84, as of July 10, 12:15 p.m. ET, an increase of more than 28 percent since July 9.
“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….