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Ferrero will buy Kellogg for $23 per share in cash for a total of about $3.1 billion, the companies announced Thursday. The deal has been approved by Kellogg’s board of directors, though it still needs to be approved by shareholders and regulators.

“WK Kellogg Co is a renowned company, in operation for nearly 120 years, and a leader shaping the future of breakfast. Ferrero, which also brings over 75 years of heritage, has long admired WK Kellogg Co’s legacy and is proud to be entrusted with carrying these iconic American brands forward,” a release said.

Headquartered in Battle Creek, WK Kellogg makes cereals like Rice Krispies, Frosted Flakes and Froot Loops. It became a standalone company in 2023, when Kellogg Company split into two: WK Kellogg, with a focus on cereal, and Kellanova, which includes snack foods and international cereals. CNBC reported that shares of WK Kellogg fell about 2% this year, but they soared following Wednesday’s news of the potential deal.

“We believe this proposed transaction maximizes value for our shareowners and enables WK Kellogg Co to write the next chapter of our company’s storied legacy,” WK Kellogg Co. CEO Gary Pilnick said in a statement. “Since becoming an independent public company in October 2023, we have made excellent progress on our journey to become a more focused and more profitable business – driven by our tremendous people and a winning culture – all while building a strong foundation for future growth. Joining Ferrero will provide WK Kellogg Co with greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market. As a family-owned private company with values in line with our founder W.K. Kellogg, Ferrero provides a great home for our people and has a track record of supporting the communities in which it operates. We look forward to collaborating with their team to deliver on the great promise of cereal, explore opportunities beyond cereal, and help us bring our best to consumers every day.”

Ferrero is the world’s third largest chocolate confectionary company, with products available in more than 170 countries, according to its website. Its brands include Nutella, Butterfinger, Kinder, Blue Bunny and Ferrero Rocher. It previously bought the Keebler and Famos Amos brands from Kellogg in 2019.

When the deal goes through, Ferrero will own all manufacturing, marketing and distribution of Kellogg products in the U.S., Canada and the Caribbean. Ferrero said the purchase is part of its “plan for strategic growth and expands the Company’s reach across more consumption occasions with renowned beloved brands and strong consumer relevance.” The company said it intended to “invest in and grow” big Kellogg brands like Frosted Flakes, Froot Loops, Frosted Mini Wheats, Special K, Rice Krispies, Raisin Bran, Kashi and Bear Naked.

Russell Zwanka, the director of Western Michigan University’s food marketing program, said consumers shouldn’t notice a difference in the cereal aisle. Rather, the shakeup is behind the box, giving the Michigan brand more resources to grow in the crowded field of consumer-packaged goods, or CPG.

“WK Kellogg is a $2.7 billion company and in the CPG world, Nestle is over $120 billion, PepsiCo is $80 billion, so you need scale to survive in this industry,” Zwanka said.

EMPLOYEES ENCOURAGED BY DEAL DETAILS

The pending sale was a surprise for employees.

“It was pretty hush-hush,” said Trevor Bidelman, union vice president and business agent for Bakery, Confectionary, Tobacco Workers and Grain Millers Union Local 3G and a fourth-generation Kellogg worker.

But its details are promising, Bidelman said. He said a broadcasted town hall Thursday morning offered some insight into how workers will be affected: They were told their current contract will be honored without changes for salaried workers for at least a year after the deal closes.

“To me, this is showing that Ferraro is kind of an employee-oriented company, family-oriented company that’s actually going to care about the employees and that’s always very huge,” Bidelman said.

There was also discussion of investing in Kellogg and its facilities, which Bidelman said was necessary.

“When the split took place, you could tell the WK … was going to focus back on being a cereal business — money to be made there, making the decisions more efficiently. So really, with this group coming in, saying that they’re just merely wanting to continue what we’ve already started and that this is not so much an acquisition as it is a partnership, like that is all very good stuff here,” Bidelman said.

In a release, Battle Creek welcomed Ferrero even as it acknowledged it was “too early to predict what this change may mean” for the city.

“W.K. Kellogg Co. has shown a strong commitment to Battle Creek since its formation,” Interim City Manager Ted Dearing said in a statement. “We are hopeful that this commitment will continue under Ferrero’s ownership.”

“We look forward to building a strong, long-term relationship that supports their success and secures their presence in our community for years to come,” Mayor Mark Behnke stated.

Kara Beer, president of the Battle Creek Area Chamber of Commerce, said time will tell how the effects of the deal will ripple across the community. But she also noted Ferrero and Kellogg share the same family values that have built a lasting relationship with Battle Creek.

“We’re on a good, good streak of great things happening here in Battle Creek and I think that this once we figure out more details of what this actually means, that is going to make this community even stronger,” Beer said.

But should the Battle Creek plant close, economic expert Brian Long said it will be “not as big of a deal as when they’ve lost other companies.”

“The number of people that are going to work in this industry is obviously declining,” said Long, the director of supply chain management at the Grand Valley State University Seidman College of Business. “That makes a big difference over the long term.”

“They’re making dry cereal,” he said. “Well, if you look at the lines at McDonald’s in the morning or any other fast food place, you realize that dry cereal is on the decline.”

He added that while the company had expanded with products like Pop Tarts, those brands all left with Kellanova.

“They spun off the good stuff … and left themselves just with the cereal business,” he said. “They probably knew (that) was probably going to close at some point in time, if they couldn’t find a buyer. Fortunately, they did find a buyer.”

ZEELAND, Mich. (WOOD) — Zeeland-based clock manufacturer Howard Miller says it intends to wind down operations after nearly 100 years in business.

“It’s sad. From the standpoint of Howard Miller, certainly, it’s iconic for the city of Zeeland,” Zeeland City Manager Tim Klunder said. “Just overall, it’s a sad day in the community.”

The company, which has about 195 employees at plants in Zeeland, Traverse City and North Carolina, plans to continue production into the fourth quarter of the year and remain open into 2026 to sell its inventory, it announced Thursday in a release.

President and CEO Howard J. Miller, who is the grandson of the company’s founder, said it had become “unsustainable” to go on.

“A convergence of market influences beyond our control brought us to this point,” he said in a statement.

He cited a struggling housing market, noting the market’s close ties to furniture sales, and tariffs.

“Our business has been directly impacted by tariffs that have increased the cost of essential components unavailable domestically and driven specialty suppliers out of business, making it unsustainable for us to continue our operations,” he said.

Howard Miller looked for a buyer but could not find one, according to the company. It “would still entertain offers from an interested buyer,” the release said.

“We are incredibly disappointed to have reached this point in our journey,” the president and CEO said. “For nearly a century, we have manufactured clocks, custom cabinets and other furniture designed to enhance the lives of our customers at home.”

Howard Miller employees will receive a severance package and job placement support, according to the release. Hekman Furniture Co., which is owned by Howard Miller, will also be closing, the company said.

“We are deeply grateful to our talented team, our committed distributors and our loyal customers who have supported us throughout the years,” Miller said.

The business was founded in 1926 by Howard C. Miller, the son of another big name in West Michigan furniture, Herman Miller.

“Until about the 1960s, they primarily made mantel clocks and wall clocks. And then in the 1960s, they shifted to become more grandfather clocks and that became a major product for them,” Zeeland Historical Society Director Katelyn VerMerris said. “(The historical society’s) No. 1 research request is to identify clocks that were made in Zeeland because we have so many heirloom clocks that were passed down all over the country

While it also makes curio cabinets and some other furnishings, clocks have been Howard Miller’s staple product. The company was the last of four major clock manufacturers that once called the city home.

“Clockmaking has a massive impact on Zeeland’s economic development, on its culture, on its industry,” VerMerris told News 8. “Clocks were one of the major exports from Zeeland for most of the 20th century.”

She explained the city was well-positioned to host Howard Miller, with plenty of timber in the area, close proximity to “Furniture City” Grand Rapids and an immigrant population with experience in making furniture. She also noted that Howard Miller’s philanthropy has supported city projects including three clocks downtown and the Howard Miller Community Center.

But, she said, the clock industry has been in decline in the city.

“I think it will be a little bit of a loss for culture,” she said of the company’s closure.

NORTON SHORES, Mich. (WOOD) — MillerKnoll is closing its Muskegon-area facility.

Most of the jobs and product lines at the facility on Estes Street south of W. Sherman Boulevard in Norton Shores will be relocated to two facilities in the Spring Lake area, a spokesperson for the furniture company told News 8 in an email Thursday.

The closure will happen in phases over the next two years, starting this summer.

“As a longstanding employer in West Michigan, MillerKnoll is committed to supporting its employees in the lakeshore community throughout this transition and will provide support and resources to all affected employees,” the spokesperson wrote.

Around 250 people work at the plant, the spokesperson said, and “the majority” of the jobs will be moved to Spring Lake. The spokesperson did not say exactly how many employees will have the option to move their job to Spring Lake.

Longtime Norton Shores resident Mike Naruskiewicz said the announcement is disappointing. He knows firsthand how much the furniture industry means to the area. He spent more than two decades working for companies like Meridian and Herman Miller.

“It’s pretty sad that they consolidate,” Naruskiewicz said. “I think they should just stay where they’re at and do the best they can.”

Naruskiewicz worries the decision to close the Norton Shores plant could have effects beyond the company itself.

“It could put a lot of guys out of work, consolidating like that, so I just don’t think it’s a good thing,” he said. “It’s too bad it puts a lot of people out of work.”

City officials say they’re paying close attention to what the closure will mean for local families and the broader economy. Norton Shores City Administrator Anthony Chandler said in a statement that the city was informed of MillerKnoll’s decision on Tuesday and is now working with local and state economic development agencies to figure out how this will effect the Greater Muskegon Area.

“The plant has been a long-standing employer and contributor to our local economy,” Chandler wrote. “We are working closely with local economic development agencies, including Greater Muskegon Economic Development and Michigan Economic Development Corporation (MEDC) to assess the full scope of the impact.”

The company currently has around 4,000 employees in Michigan.

MillerKnoll was formed in 2021 when companies Herman Miller and Knoll combined.