Kellogg announces split into three separate companies

U.S. breakfast cereal giant Kellogg said on Tuesday it plans to split its operations into three separate businesses, each with a stock market listing.

The new structure will include a group dealing with international sales of snacks, cereals and noodles as well as frozen breakfasts in North America, a company focused on the sale of cereals in the United States, Canada and the Caribbean and finally an entity specializing in the sale of products of plant origin.

Kellogg is targeting late 2023 to complete the spin-off of ‘North America Cereal Co.’ and ‘Plant Co.’ of the main group subject to obtaining the approval of the American regulators.

The new companies will be named ‘Global Snacking Co.’, ‘North America Cereal Co.’ respectively. and ‘Plant Co.’, Kellogg said.

The action of Kellogg, listed on the New York Stock Exchange, took off about 8% in electronic trading before the opening of Wall Street.

Strong potential

Each of the new entities has “considerable potential independently and increased focus will allow them to better direct their resources to their specific strategic priorities,” Kellogg CEO Steve Cahillane said in a statement.

Kellogg, known for its Corn Flakes, Frosties, Honey Pops and Special K cereals, said the companies would retain their headquarters.

The company selling cereals in the United States and Canada as well as the sales of products of plant origin will thus be based in Battle Creek, Michigan.

The internationally oriented company will have its main headquarters in Chicago (Illinois) and another campus in Battle Creek.

/ATS

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