Deal Flow
Letter · prints on one page
Transaction tear sheetData as of Nov 7, 2026
M&A · Industrials · Grain Mill Products

Ferrero International S.A. to acquire WK Kellogg Co

Announced Jul 10, 2025 · Closed Sep 26, 2025

Deal value$3.10BEV $3.10B
Premium36.0%To unaffected price
EV / Adj. EBITDA12.3x1.2x EV / Revenue
ConsiderationAll cash$23.00 per share

Transaction

Acquirer
Ferrero International S.A.
Target
WK Kellogg Co (KLG)
Buyer type
Strategic
Offer price per share
$23.00
Enterprise value
$3.10B
Status
Closed Sep 26, 2025

Deal protections

Break fee (target pays)
$73.5M · 2.4%
Reverse fee (buyer pays)
$105M · 3.4%
Go-shop
No-shop
Financing
No financing condition

Advisors

To the acquirer
Lazard, BofA Securities
To the target
Goldman Sachs, Morgan Stanley
Goldman Sachs fee
$2.0M
Morgan Stanley fee
$2.0M

Sector context · Industrials

Comparable deals
95 in the prior 24 months
Premium
36.0% vs. 39.0% sector median
EV / Adj. EBITDA
12.3x vs. 9.2x sector median
Break fee
2.4% vs. 2.7% sector median

Timeline

  1. AnnouncedJul 10, 2025
  2. Proxy filedAug 7, 2025
  3. Definitive proxyAug 19, 2025
  4. Shareholder voteSep 19, 2025
  5. ClosedSep 26, 2025

Valuation · fairness opinions

Discounted cash flowGoldman Sachs$20.53$26.63
Discounted cash flowGoldman Sachs$20.51$26.61
Future share priceGoldman Sachs$18.72$26.19
Future share priceGoldman Sachs$18.69$26.17
Premiums paidGoldman Sachs$20.08$25.37
Trading comparablesMorgan Stanley$14.50$19.00
Trading comparablesMorgan Stanley$15.75$20.25
Precedent transactionsMorgan Stanley$19.00$25.00
Precedent transactionsMorgan Stanley$20.25$26.50
Future share priceMorgan Stanley$21.00$26.75
Offer $23.00

Implied value per WK Kellogg Co share by analysis, from Goldman Sachs and Morgan Stanley · DCF discount rate 7.5%–8.5%.

Sources
  • 8-K (EX-99) · Jul 10, 2025
  • 8-K · Jul 10, 2025
  • DEFA14A · Jul 10, 2025
  • 8-K (EX-99.1) · Aug 7, 2025
  • DEFA14A · Aug 7, 2025
  • 8-K (EX-99.1) · Sep 26, 2025

Adj. EBITDA is operating income + D&A + impairment, restructuring, deal costs and stock compensation, less any large gain on a sale, last twelve months, from the target's filings. Calculated by Castle, so it can differ from a bank's adjusted figure.

Prepared with Castle from public SEC EDGAR filings. Figures are extracted automatically; verify against the source documents. Not investment advice.