The US food manufacturer Kellogg splits into three listed companies. The core of the future will be the international snack and cereal business with brands such as Kellogg’s, Frosties and Pringles, the company said. This comes to a provisional turnover of 11.4 billion dollars (equivalent to around 10.8 billion euros) in 2021. The North American cereals business with an estimated turnover of 2.4 billion dollars is to be spun off into a separate company, as is the Plant-based foods division, which achieves sales of approximately $340 million.
The spin-offs were tax-free, it said. Shareholders will receive two shares in each of the two demerged companies for each Kellogg stake. The spin-offs are expected to be completed by the end of 2023, according to the current plan. Kellogg hopes that the split will give it greater flexibility and a better focus on the respective markets.
All three entities would have good prospects on their own, and there is potential for value creation for shareholders, said CEO Steve Cahillane. The news was well received on the stock exchange: the share rose by more than seven percent before the market.