WK Kellogg on Thursday agreed to be bought by the owner of Ferrero Rocher in a deal worth around $3.1 billion, as the cereal maker has been struggling with weakening consumer demand due to persistently high inflation.
Deal making in the snacking space has picked up pace as food brands battle muted sales in the wake of price hikes owing to higher input costs and a shift in consumer preference for healthier options.
Ferrero has offered WK Kellogg’s shareholders $23 per share, representing a 31% premium to the stock’s last close.
Ferrero has offered WK Kellogg’s shareholders $23 per share, representing a 31% premium to the stock’s last close. Getty Images
Shares of the cereal maker were up 30% at $22.84 on Thursday.
The deal, which is Ferrero’s biggest acquisition in recent years, brings legacy brands such as Nutella, Kinder, Tic Tac, Frosted Flakes, Froot Loops and Special K under one roof.
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