12:01 PM EDT, 07/10/2025 (MT Newswires) -- WK Kellogg (KLG) shares surged Thursday after the cereal maker agreed to be acquired by Ferrero Group in a $3.1 billion all-cash deal.

The manufacturer of products such as Nutella and Ferrero Rocher agreed to pay $23 per share of the Frosted Flakes maker, the companies said in a joint statement on Thursday. The transaction is expected to complete in the second half of this year.

The deal, which includes WK Kellogg's portfolio of breakfast cereals in the US, Canada and the Caribbean, still requires approvals from regulators and WK Kellogg's shareowners.

Upon completion of the transaction, WK Kellogg's shares will be delisted from the New York Stock Exchange. The stock was up 31% in Thursday trade.

"We believe this proposed transaction maximizes value for our shareowners and enables WK Kellogg Co ( KLG ) to write the next chapter of our company's storied legacy," WK Kellogg Chief Executive Gary Pilnick said. "Joining Ferrero will provide WK Kellogg Co ( KLG ) with greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market."

WK Kellogg said it will issue its second-quarter results on Aug. 5, with net sales expected to be between $610 million and $615 million and adjusted earnings before interest, taxes, depreciation, and amortization pegged at $43 million to $48 million. That would reflect declines from $672 million of sales and $78 million of adjusted EBITDA reported for the prior-year period.

Earlier this year, WK Kellogg lowered its full-year guidance to take into account the potential impact of tariffs, as its fiscal first-quarter results declined year on year.

The acquisition of WK Kellogg supports Ferrero's portfolio expansion and growth in North America.

"Enhancing our portfolio with these complementary (WK Kellogg) household brands marks an important step towards expanding Ferrero's presence across more consumption occasions and reinforces our commitment to delivering value to consumers in North America," Ferrero CEO Lapo Civiletti said.

Price: 22.88, Change: +5.38, Percent Change: +30.71