- Kellogg Co (NYSE: K) Board has approved a plan to separate its North American cereal and plant-based foods businesses through tax-free spin-offs. Those businesses collectively represented 20% of its net sales in 2021.
- The move is expected to result in three independent public companies, Global Snacking Co with $11.4 billion in net sales, North America Cereal Co with about $2.4 billion, and Plant Co with $340 million in sales.
- The three separate companies will focus on their distinct strategic priorities, have more operational flexibility and enable a more focused allocation of capital and resources.
- Shareowners would receive shares in the two spin-off entities on a pro-rata basis relative to their Kellogg holdings at the record date for each spin-off.
- “These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities,” said Chairman and CEO Steve Cahillane.
- Kellogg expects the North America Cereal Co. spin-off may precede that of Plant Co., with both currently targeted to be completed by the end of 2023.
- Price Action: K shares are trading higher by 7.05% at $72.30 in premarket on the last check Tuesday.
- Photo Via Company
Read at Benzinga