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US food giant Kellogg’s announced on Tuesday that it plans to split into three independent public companies. According to Kellogg’s, it is splitting its iconic brands (snack making, cereals and plants) into separate businesses. The company’s shares rose 6.5 per cent in premarket trading following the announcement by the company.
“All of these businesses have the potential to stand alone and an increased focus will enable them to better direct their resources toward their specific strategic priorities,” company CEO Steve Kahillane said in a statement.
The company said it is exploring more strategic options for its plant-based business, including a possible sale.
Kellogg’s plant-based division and North American cereal business combined accounted for about 20 percent of the company’s revenue last year. The remainder of the business consists of its snacks, noodles, cereals and North American frozen breakfast brands.
The tax-free spinoff is expected to be completed by the end of 2023. The names of the new companies have not yet been decided, and the proposed management teams for the two spinoffs will be announced by the first quarter of next year. Kahillane will continue as CEO of the global snacking company.
Expansion
US food giant Kellogg’s announced on Tuesday that it plans to split into three independent public companies. According to Kellogg’s, it is splitting its iconic brands (snack making, cereals and plants) into separate businesses. The company’s shares rose 6.5 per cent in premarket trading following the announcement by the company.
“All of these businesses have the potential to stand alone and an increased focus will enable them to better direct their resources toward their specific strategic priorities,” company CEO Steve Kahillane said in a statement.
The company said it is exploring more strategic options for its plant-based business, including a possible sale.
Kellogg’s plant-based division and North American cereal business combined accounted for about 20 percent of the company’s revenue last year. The remainder of the business consists of its snacks, noodles, cereals and North American frozen breakfast brands.
The tax-free spinoff is expected to be completed by the end of 2023. The names of the new companies have not yet been decided, and the proposed management teams for the two spinoffs will be announced by the first quarter of next year. Kahillane will continue as CEO of the global snacking company.