Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, June 24, 2022

Article Excerpt

KELLOGG COMPANY, $70.72, symbol K on New York, is a major maker of food products in North America and the rest of the world. Its well-known brands include Pringles, Special K, Pop-Tarts, Rice Krispies, Eggo, MorningStar Farms, and many more. On June 21, 2022, Kellogg announced that it plans to separate into three independent public companies through a tax-free spinoff of its North American (U.S., Canadian, and Caribbean) cereal business, as well as the spinoff its plant-based foods business. These two businesses account for 20% of Kellogg’s overall sales. The remaining global snacking business (80% of sales) will include its global snacking, international cereal, noodles, and North American frozen breakfast businesses. For the time being, the three businesses will be referred to as Global Snacking Co., North American Cereal Co., and Plant Co. But although the plan is to spin off both the cereal and plant businesses into separate public companies, Plant Co. could end up being sold—while it’s anchored by a top industry…

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