Kellogg To Split Into Three Companies - All You Need To Know - (K)

Kellogg Co 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.
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Kellogg To Split Into Three Companies - All You Need To Know