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Kellogg, the leading cereal and snack maker, has moved a step closer to separating into two distinct business after the proposal was rubber-stamped by the company’s board.
Upon completion on 2nd October, Kellogg will be renamed Kellanova and will continue to trade on the New York Stock Exchange under the ticker symbol “K”, while the spun-off WK Kellogg Co is expected to begin trading on the NYSE under the ticker symbol “KLG”.
Kellanova will feature a portfolio that is weighted toward snacks and emerging markets, and is projected to generate net sales of approximately $13.4-$13.6 billion in 2024. Meanwhile WK Kellogg Co will focus on the North American cereal market and is projected to achieve net sales of approximately $2.7 billion in the same year.
Commenting on the move, Steve Cahillane, Kellogg chairman and CEO, said: “After more than a year of comprehensive planning and execution, we are more confident than ever that the separation will produce two stronger companies and create substantial value for shareowners”.
“WK Kellogg Co has a 117-year legacy of innovation and the soul of a start-up, with an organization incredibly energized by our future”, added Gary Pilnick, who will serve as WK Kellogg Co chairman and CEO following the separation. “As a standalone company, we will benefit immediately from the executional advantages of increased focus and end-to-end integration, while we modernize our supply chain and substantially improve our profit margins”.
Source: Kellogg
