Italian Nutella maker buys iconic cereal company Kellogg

The Ferrero Group on Wednesday said it finalized an agreement with WK Kellogg Co to acquire the nearly 120-year-old American firm. Ferrero will pay $23 per share for a total sale price of about $3.1 billion. The Italian company will take control of all six of Kellogg’s manufacturing plants and the marketing and distribution of its cereals throughout the United States, Canada, and the Caribbean. Once the transaction is complete, shares of Kellogg’s stock will not be traded on the New York Stock Exchange.

What is the history of Kellogg? W.K. Kellogg founded the company in 1906, more than a decade after he developed Corn Flakes. The company now produces well-known cereals including Rice Krispies, Froot Loops, Raisin Bran, and Frosted Flakes. Company leaders in the 1930s founded the W.K. Kellogg Foundation to promote nutrition and education for families and children. In 1969, astronauts with NASA took Kellogg’s cereal aboard the Apollo 11 trip to the moon.

What about Ferrero? Brothers Pietro and Giovanni Ferrero founded the company during 1946 in the town of Alba, Italy. It is now one of the largest companies to produce packaged sweets and owns more than 35 brands around the world. In addition to Nutella, Ferrero also owns Keebler, Famous Amos, Blue Bunny, and Kinder. 

Dig deeper: Read Addie Offereins’ report about how lawmakers are trying to prevent food stamps from being used to purchase sugary drinks.