Kellogg Shares Jump On Plans To Split Into Three Businesses
Kellogg Shares Jump On Plans To Split Into Three Businesses Kellogg Co. announced plans to split into three independent companies focused on cereals, snacks, and plant-based foods. Breaking up its portfolio via tax-free spin-offs will give each independent company (whose names will be determined later) a better opportunity to grow, the Michigan-based company said in a statement. Kellogg shares jumped 8.9% in premarket trading Tuesday on the news. The three separate businesses include: *"Global Snacking Co.", with about $11.4 billion* in net sales, will be a leading company in global snacking, international cereal and noodles, and North America frozen breakfast, with iconic, world-class brands and strong underlying growth momentum and profitability; *"North America Cereal Co.", with about $2.4 billion* in net sales, will be a leading cereal company in the U.S., Canada, and Caribbean, with a portfolio of iconic, world-class brands and compelling opportunities for investment and profit growth; and *"Plant Co.", with about $340 million* in net sales, will be a leading, profitable, pure-play plant-based foods company, anchored by the MorningStar Farms brand, with a significant opportunity to capitalize on strong long-term category prospects by investing further in North America penetration and future international expansion.
Kellogg Shares Jump On Plans To Split Into Three Businesses
Kellogg Shares Jump On Plans To Split Into Three Businesses Kellogg Co. announced plans to split into three independent companies focused on cereals, snacks, and plant-based foods. Breaking up its portfolio via tax-free spin-offs will give each independent company (whose names will be determined later) a better opportunity to grow, the Michigan-based company said in a statement. Kellogg shares jumped 8.9% in premarket trading Tuesday on the news. The three separate businesses include: *"Global Snacking Co.", with about $11.4 billion* in net sales, will be a leading company in global snacking, international cereal and noodles, and North America frozen breakfast, with iconic, world-class brands and strong underlying growth momentum and profitability; *"North America Cereal Co.", with about $2.4 billion* in net sales, will be a leading cereal company in the U.S., Canada, and Caribbean, with a portfolio of iconic, world-class brands and compelling opportunities for investment and profit growth; and *"Plant Co.", with about $340 million* in net sales, will be a leading, profitable, pure-play plant-based foods company, anchored by the MorningStar Farms brand, with a significant opportunity to capitalize on strong long-term category prospects by investing further in North America penetration and future international expansion.