Kellanova Completes Separation of North American Cereal Business
Kellanova, formerly known as Kellogg Co., has completed the previously revealed separation of its North American cereal business, WK Kellogg Co, resulting in two independent public companies. The separation was achieved through the distribution of all of the shares of WK Kellogg Co to holders of Kellanova common stock at 12:01 a.m. EDT on Oct. 2, with Kellanova shareowners receiving one share of WK Kellogg Co common stock for every four shares of Kellanova common stock held as of the close of business on the record date of Sept. 21. Kellanova plans to file its material separation agreements with WK Kellogg Co with the U.S. Securities and Exchange Commission.
WK Kellogg Co will begin regular way trading on the New York Stock Exchange (NYSE) today under the ticker symbol “KLG,” while Kellanova will continue to trade on the NYSE under the ticker symbol “K.”
“With the completion of the separation, Kellanova has entered a new era with a new name and a new ambition,” said Kellanova Chairman and CEO Steve Cahillane. “We are starting from a position of strength that is rooted in a century-old legacy as we embark on a journey to achieve our vision of becoming the world’s best performing snacks-led powerhouse.”
With projected 2024 net sales of about $13.4 billion-13.6 billion, Kellanova offers a portfolio of iconic world-class brands, among them Pringles, Cheez-It, Pop-Tarts, Kellogg’s Rice Krispies Treats, MorningStar Farms, Incogmeato, Gardenburger, Nutri-Grain, RXBAR and Eggo. Kellanova also oversees a range of iconic international cereal brands, including Kellogg’s, Frosties, Zucaritas, Special K, Krave, Miel Pops, Coco Pops and Crunchy Nut. While the company’s corporate name has changed to Kellanova, the Kellogg's brand will remain on its products around the world.
According to the company, as a stand-alone entity, Kellanova will benefit from greater operational focus and fit-for-purpose strategy and resource allocation, investing in its differentiated brands to deliver consistently strong net sales and earnings growth over time. This growth is expected to be complemented by improved profitability to be achieved through operating leverage, a mix shift toward its most differentiated brands, building scale in emerging markets, and continuing productivity and revenue growth management.
Kellanova will operate dual campuses in Battle Creek, Mich., and Chicago, with its corporate headquarters in the latter city. The company’s three international regions in Europe, Latin America, and Asia Pacific, Middle East and Africa will maintain their current headquarters.
To mark the company’s first day of trading as Kellanova on Oct. 2, Cahillane joined members of the Kellanova executive leadership team at the NYSE for a brief ceremony and to ring the opening bell.
