The Ferrero Group said that on Thursday it would buy WK Cellog Company in a value of $ 3.1 billion, which would expand the global reach of Italian food giants.
Kelog, which was installed in Battle Creek, Michigan in 1906, was Korn Flex, Fruit Loops, Rice Crispies and Special. Known for brands, including the brands of the pharyro, which contains nutela and induced chocolate.
The deal will include the portfolio of the manufacture, marketing and distribution of grain brands in the US, Canada and Caribbean, said the grain manufacturer said.
The Pharreo will pay $ 23 for each WK celebrity share. The stock of the kelogue exceeded 35% in the initial trade.
In 2023, Kelog liked snack brands, such as cheese-Its and pringles in a separate company called Kelanova in a separate company. MRS, the manufacturer of M&M, announced last year that it planned to buy Kelanova in a deal of about 30 billion dollars.
Brad Haller, a senior partner at the consulting firm West Monroe, said in an email that the signs of acquisition indicate consolidation in the food and beverage sector, “global players seek the width of the scale and category to navigate consumer preferences and height competition.”
The deal comes as a pharyro, which was launched Italy in 1946, attempts to broaden its access to the US and other international markets. In 2018, the company bought Nestle’s US Candy brands, including Butterfinger, Nard and Sweetirt. Four years later, it acquired Wells Enterprises, which is the ice cream brand Blue and Hello is behind the top.
The $ 3.1 billion deal will also provide some financial respiratory chamber to the celebration.
CEO Gary Pilnik said in a statement, “By joining the pharyero, WK Kelog company will provide more resources and more flexibility to develop our iconic brands in this competitive and dynamic market.”
Calog on Tuesday Informed A decrease of $ 663 million in net sales in its first quarter, 6.2% from a year ago. In its income statement, the company mentioned that it was focusing on health and nutrition in response to consumer preferences.
According to Kelog, the acquisition is expected to be closed in the second half of this year. After the completion of the transaction, the company’s shares will no longer trade in the New York Stock Exchange, saying Kellog said.
Contributed to this report.
