Nutella maker Ferrero plans to purchase century-old cereal maker WK Kellogg for $3.1 billion

Italian confectioner Ferrero, recognized for manufacturers like Nutella and Kinder, is shopping for the century-old U.S. cereal firm WK Kellogg in a deal valued at roughly $3.1 billion.

The Ferrero Group stated Thursday it should pay $23 for every Kellogg share. The transaction contains the manufacturing, advertising and marketing and distribution of WK Kellogg Co.’s portfolio of breakfast cereals throughout the US, Canada and the Caribbean.

WK Kellogg’s shares have been up 30% in premarket buying and selling Thursday.

Kellogg, which was based in Battle Creek, Michigan, in 1906, makes Fruit Loops, Particular Ok, Frosted Flakes and Rice Krispies.

The present firm was fashioned in 2023, when Kellogg’s snack manufacturers like Cheez-Its and Pringles have been spun right into a separate firm referred to as Kellanova. M&M’s maker Mars Inc. introduced final 12 months that it deliberate to purchase Kellanova in a deal price almost $30 billion.

Ferrero Group, which was based in Italy in 1946, has been making an attempt to broaden its U.S. footprint. In 2018 it purchased Nestle’s U.S. sweet manufacturers, together with Butterfinger, Nerds and SweeTarts. And in 2022 it purchased Wells Enterprises, the maker of ice cream manufacturers like Blue Bunny and Halo High.

The deal, which nonetheless wants approval from Kellogg shareholders, is anticipated to shut within the second half of the 12 months. As soon as the transaction is full, Kellogg’s inventory will not commerce on the New York Inventory Change and the corporate will develop into a Ferrero subsidiary.