(CercleFinance.com) – Kellogg announced on Tuesday that it plans to separate into three listed companies, via the spin-offs of its North American cereals business and its vegetable foods branch.
The first set, for now called ‘North America Cereal Co.’ will bring together the food group’s activities in the United States, Canada and the Caribbean under brands such as Kellogg’s, Frosted Flakes, Froot Loops, Mini-Wheats and Special K.
This scope represents an annual turnover of around 2.4 billion dollars.
The second set, referred to as ‘Plant Co.’ and essentially articulated around the brand of vegetable products MorningStar Farms, has annual sales of 340 million dollars.
The remaining 80% of the group, or the equivalent of $11.4 billion in sales per year, will be grouped under the banner ”Global Snacking Co.” integrating activities in snacks, international cereal brands, instant noodles and frozen breakfasts.
This demerger operation, which should take place before the end of 2023, is supposed to promote the creation of value for shareholders by giving birth to three companies that are better positioned both strategically, operationally and financially.
Following these announcements, Kellogg’s stock was expected to rise more than 7% on Tuesday at the opening.
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