Kellogg Company’s board has formally approved the previously announced separation of the company into two independent, publicly traded companies, Kellanova and WK Kellogg Co.
"After more than a year of comprehensive planning and execution, we are more confident than ever that the separation will produce two stronger companies and create substantial value for shareowners," said Steve Cahillane, Kellogg’s chairman and CEO, in a statement.
Upon completion of the separation on Oct. 2, Kellogg will be renamed Kellanova, and will continue to trade on the New York Stock Exchange under the ticker symbol "K", while WK Kellogg Co is expected to begin trading on the NYSE under the ticker symbol "KLG".
On Oct. 2, Kellogg shareowners of record as of September 21, will receive one share of WK Kellogg Co for every 4 shares of Kellogg Company owned.
Kellanova will feature a growth-oriented portfolio that is weighted toward snacks and emerging markets, and will be led by differentiated brands with considerable opportunity for expansion, according to Kellogg.
Kellanova expects to deliver long-term annual growth rates of 3-5 percent for net sales (organic basis), 5-7 percent for operating profit (currency neutral and adjusted basis), and 7-9 percent for earnings per share (currency neutral and adjusted basis), including in 2024 on a like-for-like basis excluding WK Kellogg Co.
"We are looking forward to a new era as Kellanova, marked by a more growth-oriented portfolio, a renewed vision and strategy, and an energized organization grounded by a winning culture and our founder's values," said Cahillane, who will remain chairman and CEO of Kellanova. "These elements build on what has already been a track record of strong and consistent financial performance for the Kellanova portfolio."
Building on a leading share position in North American cereal, WK Kellogg Co will focus and integrate its commercial strategy and execution, while modernizing its supply chain.
"WK Kellogg Co has a 117-year legacy of innovation and the soul of a start-up, with an organization incredibly energized by our future," said Gary Pilnick, who will serve as WK Kellogg Co's chairman and CEO following the separation. "As a standalone company, we will benefit immediately from the executional advantages of increased focus and end-to-end integration, while we modernize our supply chain and substantially improve our profit margins. We're on a profitable journey to take this great business to the next level."
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