Kellogg board approves company’s split into two listed entities

Kellogg’s board of directors has approved the FMCG giant’s split into two independent, publicly traded entities: Kellanova and WK Kellog Co.

From October 2, Kellogg Company will be renamed Kellanova and will continue to trade on the New York Stock Exchange under the ticker symbol “K”, while WK Kellogg Co will trade under the ticker symbol “KLG”.

Kellog chairman and CEO Steve Cahillane said the decision was made after more than a year of comprehensive planning and execution.

“We are more confident that the separation will produce two stronger companies and create substantial value for shareowners,” said Cahillane.

Kellanova will focus on an expanding portfolio geared towards snacks and emerging markets, led by various brands.

It is projected to generate net sales of an estimated US$13.4 to $13.6 billion and an adjusted-basis EBITDA (earnings before interest and tax, depreciation, and amortization expenses) of $2.25 to $2.3 billion next year.

“We are looking forward to a new era as Kellanova, marked by a more growth-oriented portfolio, a renewed vision and strategy, and an energised organization grounded by a winning culture and our founder’s values,” continued Cahillane, who will serve as chairman and CEO of Kellanova.

“These elements build on what has already been a track record of strong and consistent financial performance for the Kellanova portfolio.”

Meanwhile, WK Kellogg Co will continue to build on the foundation of its “iconic” cereal brands and will focus on integrating its commercial strategy and execution while modernizing its supply chain.

Gary Pilnick will serve as its chairman and CEO following the separation.

The business is expected to earn an estimated $2.7 billion in net sales and adjusted-basis EBITDA of approximately $225 to $265 million in 2024.

Pilnick explained that as a standalone company, it will immediately benefit from the advantages of increased focus and end-to-end integration while modernizing its supply chain.

“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,” he concluded. “We’re on a profitable journey to take this great business to the next level.”

Kellogg Shareowners of record will receive one share of KLG for every four shares of K owned.