Ferrero Acquires WK Kellogg Co (KLG) Co for $3.1 Billion

We recently compiled a list of 10 Best Mid Cap Stocks to Buy According to Billionaires. WK Kellogg Co stands eighth on our list and has recently been acquired by Ferrero for $3.1 billion.

WK Kellogg Co (NYSE:KLG), an iconic American cereal maker behind brands like Frosted Flakes and Special K, was spun off from Kellogg’s North American cereal business in 2023 to operate as a standalone company focused on cereals. In July 2025, Ferrero Group, a global confectionery giant known for Nutella and Ferrero Rocher, announced a $3.1 billion deal to acquire WK Kellogg Co (NYSE:KLG), taking the company private. The acquisition includes operations in the US, Canada, and the Caribbean and aligns with Ferrero’s strategy to expand in North America and diversify into the ready-to-eat cereal market.

The deal comes at a pivotal time for the company, which has been working to modernize its operations and revamp its product portfolio. Despite a 2% sales decline in 2024 due to shifting consumer preferences toward healthier and more affordable options, the business grew its EBITDA by 7.5% through a $500 million multi-year supply chain modernization plan. This effort includes a $200 million investment in 2025 to improve production efficiency, reduce waste, and strengthen margins. For investors looking at the best mid-cap stocks poised for transformation, KLG stood out as a promising candidate due to its strategic turnaround initiatives and strong brand recognition.

In parallel, the business has been launching innovation-driven “food platforms,” introducing new on-the-go formats and healthier variants of popular cereals like Blueberry Bran Crunch. These moves aim to reposition the brand in a category facing stagnant growth and evolving consumer habits.

Ferrero’s acquisition is expected to accelerate these efforts by bringing in additional capital, marketing strength, and product innovation expertise. Analysts believe the combination of WK Kellogg Co (NYSE:KLG)’s brand equity and Ferrero’s operational capabilities could reinvigorate the cereal business and improve competitiveness against established players like General Mills. The focus on modernization and health-oriented product expansion sets a strong foundation for future growth under Ferrero’s leadership.

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Disclosure: None.