The Kellogg Co.'s board of directors formally approved the previously announced separation into two independent, publicly traded companies, Kellanova and WK Kellogg Co. The separation was first announced in June 2022 and is expected to become effective on Oct. 2.
"After more than a year of comprehensive planning and execution, we are more confident than ever that the separation will produce two stronger companies and create substantial value for shareowners," said Steve Cahillane, chairman and CEO at Kellogg Co.
Kellanova is projected to generate net sales of approximately $13.4-$13.6 billion in 2024, while WK Kellogg Co. projects net sales of approximately $2.7 billion in 2024. The company set the distribution ratio of shares at one share of WK Kellogg Co. for every four shares of the current Kellogg Co.
WK Kellogg Co.
The company is prepared to separate its United States, Canada and Caribbean cereal business in a tax-free spinoff to Kellogg shareowners. This company will be called WK Kellogg Co., and its stock will be traded on the New York Stock Exchange (NYSE), under the ticker symbol “KLG.”
WK Kellogg Co. has a portfolio of brands, including Frosted Flakes, Special K, Froot Loops, Raisin Bran, Frosted Mini-Wheats, Kashi and more. As a standalone company, it will benefit from greater operational focus and fit-for-purpose strategy and resource allocation, the company said, which will enable it to invest in substantially improving its profit margins over the next few years, including the optimization of its manufacturing network, while also improving its competitiveness and share of market.
“We have made great strides toward establishing WK Kellogg Co. as an independent business,” said Gary Pilnick, WK Kellogg Co.'s CEO designate. “Our new team is in place, and we are building a focused company that we believe has outstanding prospects. We are excited to share our strategy and outlook in a few weeks.”
Kellanova
Following the spinoff of WK Kellogg Co., the remainder of the Kellogg Co. will change its name to Kellanova and will continue to be traded on the NYSE under the ticker symbol “K.”
In 2022, global snacks and emerging markets collectively represented about 80% of Kellanova's net sales. Kellanova's portfolio will be comprised of snacks, international cereal, noodles and frozen foods.
As a standalone company, Kellanova will benefit from greater operational focus, fit-for-purpose strategy and resource allocation, the company said.
Battle Creek, Michigan-based Kellogg is a cereal, cookie, cracker, snack and frozen-foods company. Its brands include Kellogg’s, Keebler, Special K, Pringles, Kellogg’s Frosted Flakes, Pop-Tarts, Kellogg’s Corn Flakes, Rice Krispies, Kashi, Cheez-It, Eggo, Coco Pops, Mini-Wheats and more.
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