Ferrero International SA has struck a definitive agreement to acquire WK Kellogg Co. for an enterprise value of roughly $3.1 billion, the companies said on Thursday. The Italian confectioner will pay $23 in cash for each Kellogg share, representing a premium of about 31% to the cereal maker’s last closing price before news of the talks surfaced. The deal, unanimously approved by WK Kellogg’s board, will add household staples such as Froot Loops, Frosted Flakes and Rice Krispies to Ferrero’s portfolio, which already includes Nutella, Kinder and Tic Tac. Kellogg’s shares jumped about 30% to $22.89 after the announcement, while Ferrero remains privately held by the Ferrero family. Ferrero, controlled by executive chairman Giovanni Ferrero, has been expanding aggressively in North America, following its 2018 purchase of Nestlé’s U.S. confectionery assets and its 2022 acquisition of Wells Enterprises, maker of Blue Bunny ice cream. For Kellogg, which was spun out of the former Kellogg Co. in 2023, the sale comes amid softening cereal demand and persistent cost inflation. The transaction is expected to close in the second half of 2025, subject to approval by Kellogg shareholders and antitrust regulators. Battle Creek, Michigan, will remain the hub for the combined cereal business in North America.