July 11 - Private equity firm Cerberus Capital

Management, which owns a stake in grocer Albertsons ( ACI ), and

billionaire investor Dean Metropoulos teamed up in an

unsuccessful bid for cereal maker WK Kellogg, according

to three sources familiar with the matter.

The consortium, which was being advised by investment banks UBS

and Macquarie Capital, ultimately lost out to private,

family-owned Ferrero Group, which on Thursday announced an

agreement to acquire WK Kellogg for around $3.1 billion.

However, the offer from Cerberus and Metropoulos was

considered a serious alternative to Ferrero and has caused

industry insiders to wonder about a possible future target for

the pair, two of the sources said. Both Cerberus and Metropoulos

have histories of investing in the food industry.

WK Kellogg, Cerberus, UBS and Macquarie declined to comment.

Metropoulos & Co did not immediately respond to a comment

request.

Dealmaking in the food space has picked up steam in recent

months as owners focus on core names and offload underperforming

brands. There has been a relatively steady supply of buyers for

these divestments, aiming to turn around their fortunes.

Cerberus is the top shareholder in grocery chain Albertsons ( ACI ),

but it has not made a big bet on a consumer or retail company in

years. Its offer for WK Kellogg shows the firm still has a

desire to invest in the sector, the sources said.

Meanwhile, the investment firm of Greek-American billionaire

Metropoulos - Metropoulos & Co - acquired Nestlé Waters North

America in partnership with One Rock Capital Partners in 2021.

The firm is known for making investments in numerous consumer

names, including Hostess Brands, Utz and Pinnacle Foods.

Kellogg split into two in 2023, creating WK Kellogg to house

cereal brands and Kellanova ( K ) to house its other brands.

M&M's owner Mars agreed to buy Kellanova ( K ) for $36 billion last

year.