Kellogg to separate into two independent companies this October

Kellogg Company has announced that its board of directors formally approved the previously announced separation into two independent, publicly traded companies — Kellanova and WK Kellogg Co. The separation is expected to be completed on 2 October 2023.

“After more than a year of comprehensive planning and execution, we are more confident than ever that the separation will produce two stronger companies and create substantial value for shareowners,” stated Steve Cahillane, Kellogg Company’s Chairman and Chief Executive Officer.

Kellanova will have a portfolio focused on snacks and emerging markets, while WK Kellogg Co will build on the foundation of its iconic cereal brands.

“WK Kellogg Co has a 117-year legacy of innovation and the soul of a startup, with an organisation incredibly energised by our future,” remarked Gary Pilnick, who will serve as WK Kellogg Co’s Chairman and Chief Executive Officer following the separation. “As a standalone company, we will benefit immediately from the executional advantages of increased focus and end-to-end integration, while we modernise our supply chain and substantially improve our profit margins. We’re on a profitable journey to take this great business to the next level.”

“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 organisation grounded by a winning culture and our founder’s values,” said Cahillane, who will remain Chairman and Chief Executive Officer of Kellanova. “These elements build on what has already been a track record of strong and consistent financial performance for the Kellanova portfolio.”

Image caption: iStock.com/Andrey Mitrofanov