By Zoran Temelkov June 2022
Kellogg Company (NYSE: K), maker of the popular Frosted Flakes, Rice Krispies and Eggo, announced that it would split its operations into three new companies, respectively focused on cereal, snacks, and plant-based foods.
The company expects its spinoff to be completed by the end of the next year. Kellogg Co. plans to spin its U.S., Canadian, and Caribbean cereal and plant-based businesses, which bring nearly 20% of the company’s net sales in 2021. The business activities responsible for approximately 80% of the net sales in 2021 will focus on North America frozen breakfast, global snacking, and international cereal and noodles.
When the spinoff is completed, the company will be divided into three independent companies, and shareholders will receive shares in the two newly created companies on a pro-rata basis in relation to their Kellogg holdings.
The company’s Board of Directors has already approved the separation through tax-free spinoffs to unlock the full potential of each separate business unit.
The headquarters of Global Snacking Co. will be located in Chicago, while the company plans to continue operating with dual campuses in Battle Creek and Chicago, Illinois. North America Cereal Co. and Plant Co. will be headquartered in Battle Creek, Michigan.
The company’s international headquarters will not be changed, and it will continue operating in its current locations in Europe, AMEA, and Latin America.