Today, Kellanova (formerly Kellogg Company) announced the successful completion of the separation of its North American cereal business, WK Kellogg Co. This separation has resulted in two independent, publicly traded companies, each better positioned to realize its full potential. Shareholders of Kellanova received one share of WK Kellogg Co common stock for every four shares of Kellanova common stock they held as of the record date on September 21, 2023.
WK Kellogg Co has started trading on the New York Stock Exchange (NYSE) under the symbol “KLG,” while Kellanova will continue trading under the symbol “K.” Kellanova will also file its material separation agreements with WK Kellogg Co with the U.S. Securities and Exchange Commission (SEC).
“With the completion of the separation, Kellanova has entered a new era with a new name and a new ambition,” said Steve Cahillane, Kellanova’s Chairman and CEO. “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.”
Kellanova, with projected 2024 net sales of around $13.4-13.6 billion, is a global leader in snacks, boasting a portfolio of renowned brands like Pringles, Cheez-It, Pop-Tarts, and more. It also oversees a suite of popular international cereal brands. Despite the corporate name change, the Kellogg’s brand will continue to appear on its products worldwide.
As a standalone company, Kellanova aims to focus on its operations and strategic resource allocation, investing in its distinct brands to achieve consistent net sales and earnings growth. This growth will be supported by enhanced profitability through factors like operational efficiency, emphasis on differentiated brands, expansion in emerging markets, and ongoing productivity and revenue growth management.
Kellanova will maintain dual campuses in Battle Creek, Michigan, and Chicago, Illinois, with its corporate headquarters in Chicago. Its three international regions in Europe, Latin America, and Asia Pacific, Middle East, and Africa (AMEA) will retain their current headquarters.
In honor of Kellanova’s inaugural day of trading, Chairman and CEO Steve Cahillane, along with the Kellanova executive leadership team, will participate in ringing the Opening Bell at the NYSE.
Kellogg’s cereal business began trading on the New York Stock Exchange at $13.80 per share as WK Kellogg.
Kellanova shareholders eligible for the distribution have either received a book-entry account statement or a credit to their brokerage account, indicating their ownership of WK Kellogg Co common stock. In cases where fractional shares of WK Kellogg Co common stock were involved, these were not directly distributed. Instead, any fractional shares will be sold on the open market on behalf of the shareholder. The shareholder will then receive a cash payment corresponding to their proportional share of the net cash proceeds resulting from all fractional share sales.
In June 2022, executives announced the planned separation of Kellogg Company, aiming to address stagnant cereal sales due to consumers’ increasing breakfast choices and convenience preferences. Simultaneously, snacking has gained popularity as consumers snack between meals, although the growth of anti-obesity drugs like Ozempic and Wegovy may pose a threat to future sales.
Initially, Kellogg intended to create three separate companies, dividing its cereal, snacking, and plant-based brands. However, declining consumer and investor interest in the plant-based category led Kellogg to include those brands under Kellanova in February.
(Source: Kellogg’s Press Release | Amelia Lucas | CNBC)
