Boxes of various Kellogg's cereals are displayed on shelves at a Walmart Supercenter on May 6, 2025 in Austin, Texas.
Brandon Bell | Getty Images
Chocolate maker Ferrero has agreed to buy cereal giant WK Kellogg in a deal valued at $3.1 billion.
WK Kellogg, which makes U.S. childhood staples such as Froot Loops and Frosted Flakes, spun off into a standalone company in 2023. A separate publicly traded business, Kellanova, now houses snack brands such as Pringles and Cheez-It. M&M owner Mars agreed to buy Kellanova for $36 billion last year in a deal that has not yet closed.
WK Kellogg shares have fallen about 2% this year, and the company has a roughly $1.5 billion market cap.
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 third-largest U.S. candy company in May announced a new slate of products to appeal to American consumers, including peanut Nutella and Dr Pepper Tic Tacs.
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