Battle Creek, Michigan, January 22, 2026
WK Kellogg Co., the famed cereal maker from Battle Creek, Michigan, has been acquired by the Ferrero Group in a deal worth $3.1 billion. Though the sale entails a shift in ownership, WK Kellogg’s headquarters will remain in Battle Creek. The acquisition comes on the heels of significant financial declines for WK Kellogg, including a 78% drop in net income, prompting a multi-million dollar supply chain modernization plan and job cuts.
Battle Creek, Michigan
WK Kellogg Co. Finalizes $3.1 Billion Acquisition by Ferrero Group
WK Kellogg Co., the renowned cereal manufacturer based in Battle Creek, Michigan, has completed its acquisition by the Italian confectionery giant Ferrero Group in a deal valued at $3.1 billion. This acquisition marks a significant shift in the company’s ownership and operations.
Details of the Acquisition
Shareholders of WK Kellogg Co. approved the sale, with each receiving $23 in cash per share. The transaction was finalized on September 26, 2025, transferring ownership to Ferrero Group, known for products like Butterfinger and Nutella. Despite the change in ownership, WK Kellogg Co.’s headquarters will remain in Battle Creek, maintaining its longstanding presence in the community.
Financial Performance and Strategic Moves
Prior to the acquisition, WK Kellogg Co. reported a decline in net income for the second quarter of fiscal 2025, with earnings dropping 78% to $8 million compared to the same period the previous year. This downturn was attributed to reduced consumer spending on branded packaged foods and operational challenges. In response, the company announced a $450 to $500 million supply chain modernization plan, aiming to enhance efficiency and production capabilities at its facilities in Battle Creek, Michigan; Lancaster, Pennsylvania; and Belleville, Ontario. As part of this strategy, WK Kellogg Co. planned to close its Omaha, Nebraska plant by the end of 2026 and scale back production at its Memphis, Tennessee facility, resulting in a net loss of approximately 550 jobs. These measures were intended to streamline operations and focus on core manufacturing sites.
Industry Context
The acquisition of WK Kellogg Co. by Ferrero Group is part of a broader trend in the food industry, where companies are reevaluating their portfolios and operations. For instance, Kraft Heinz Co. is reportedly considering a breakup to reverse its 2015 merger, aiming to create a more streamlined business model. Such strategic shifts reflect the industry’s ongoing efforts to adapt to changing consumer preferences and market dynamics.
Impact on Battle Creek and Michigan
The sale of WK Kellogg Co. signifies the end of an era for Battle Creek, historically known as “Cereal City” due to its association with the company. The community has experienced significant changes, including job losses and shifts in local economic activity. However, the retention of WK Kellogg Co.’s headquarters in Battle Creek provides some continuity and potential for future investment in the region.
Conclusion
The completion of Ferrero Group’s acquisition of WK Kellogg Co. represents a pivotal moment in Michigan’s corporate landscape. While it brings new opportunities for the company under Ferrero’s ownership, it also poses challenges for the local community, which has been closely tied to the cereal manufacturer’s legacy for over a century.
Frequently Asked Questions (FAQ)
What is the value of the acquisition of WK Kellogg Co. by Ferrero Group?
The acquisition was valued at $3.1 billion.
Will WK Kellogg Co.’s headquarters remain in Battle Creek, Michigan?
Yes, despite the change in ownership, WK Kellogg Co.’s headquarters will remain in Battle Creek, maintaining its longstanding presence in the community.
What operational changes did WK Kellogg Co. announce prior to the acquisition?
Prior to the acquisition, WK Kellogg Co. announced a $450 to $500 million supply chain modernization plan, aiming to enhance efficiency and production capabilities at its facilities in Battle Creek, Michigan; Lancaster, Pennsylvania; and Belleville, Ontario. As part of this strategy, the company planned to close its Omaha, Nebraska plant by the end of 2026 and scale back production at its Memphis, Tennessee facility, resulting in a net loss of approximately 550 jobs.
How does the acquisition of WK Kellogg Co. fit into broader industry trends?
The acquisition is part of a broader trend in the food industry, where companies are reevaluating their portfolios and operations. For instance, Kraft Heinz Co. is reportedly considering a breakup to reverse its 2015 merger, aiming to create a more streamlined business model. Such strategic shifts reflect the industry’s ongoing efforts to adapt to changing consumer preferences and market dynamics.
What is the impact of the acquisition on Battle Creek and Michigan?
The sale of WK Kellogg Co. signifies the end of an era for Battle Creek, historically known as “Cereal City” due to its association with the company. The community has experienced significant changes, including job losses and shifts in local economic activity. However, the retention of WK Kellogg Co.’s headquarters in Battle Creek provides some continuity and potential for future investment in the region.
Key Features of the Acquisition
| Feature | Details |
|---|---|
| Acquisition Value | $3.1 billion |
| Shareholder Compensation | $23 in cash per share |
| Headquarters Location | Battle Creek, Michigan |
| Supply Chain Modernization Plan | $450 to $500 million investment |
| Plant Closures and Downsizing | Omaha, Nebraska plant closure by end of 2026; Memphis, Tennessee facility downsizing |
| Job Losses | Approximately 550 jobs affected |
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