Topline
Kellogg will split into three public companies, the food giant announced Tuesday morning, sending shares of the iconic cereal maker surging in premarket trading.
Boxes of Kellogg's cereals sit on the shelves at a grocery store.
Key Facts
The largest of the three companies will be Global Snacking Co., accounting for more than 75% of Kellogg’s sales and comprising most of its domestic non-cereal products—including Cheez-its and Pop Tarts—as well as its international cereal business.
The newly formed North America Cereal Co. will include the North American business of Kellogg’s cereals like Rice Krispies and Frosted Flakes, while the Plant Co. will cover its plant-based foods anchored by its MorningStar Farms line.
Kellogg said based on the projected divisions the plant-based offshoot accounted for just $340 million in 2021 sales compared to $2.4 billion for the new North American Cereal Company and $11.4 billion for Global Snacking Company.
Kellogg said it hopes to complete the spinoffs by the end of next year.
Big Number
5.9%. That’s how much Kellogg’s shares jumped in premarket trading, reaching $71.50 but cooling off after rising as much as 8%.
Tangent
Kellogg competitor Mondelez made a splash Monday when it announced it planned to acquire energy bar maker Clif Bar in a deal worth at least $2.9 billion.
Further Reading
Mondelez to Acquire Clif Bar for $2.9 Billion (Wall Street Journal)
