Ferrero to Buy WK Kellogg in $3.1 Billion Deal for US Growth (3)

Ferrero International SA agreed to acquire WK Kellogg Co. for an enterprise value of $3.1 billion, pushing the Italian family-owned candy business further into the lucrative US market.

Ferrero will pay $23 per Kellogg share in cash, according to a statement Thursday, representing a premium of about 31% from Kellogg’s closing price on Wednesday.

The deal combines the maker of chocolate nut spread Nutella with the company behind Froot Loops and Frosted Flakes cereals, expanding Ferrero’s empire of comfort foods and diversifying its chocolate-heavy portfolio at a time of higher cocoa prices.

Shares in WK Kellogg rallied 31% to ...