Ferrero, the Italian manufacturer of world-renown brands like Ferrero Rocher and Nutella, has recently struck a deal to buy major cereal giant, WK Kellogg.
WK Kellogg is the company behind Froot Loops and Frosted Flakes, and the acquisition marks Ferrero expansion into the breakfast cereal category in the US market.
The acquisition deal was estimated at US$3.1 billion, while WK Kellogg has a current market value of US$1.5 billion, signifying Ferrero paying a premium to bolster its business and access to the North American market.
In the past few years, Ferrero has acquired Wells Enterprises, the maker of Blue Bunny and other ice-cream brands, and struck a US$2.8 billion deal to buy Nestle’s US chocolate business. Ferrero now has 15 plants and warehouses across the US, Canada and the Caribbean, employing more than 5,100 people.
