6/21, 1:27 PM (Source: TeleTrader)
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Chart for: Kellogg Co

Kellogg to split into three companies

Kellogg Company announced on Tuesday that it will be splitting its business into three independent entities. The multinational food manufacturer confirmed that the decision has been approved by its Board of Directors.

The three companies will be "'Global Snacking Co.', with about $11.4 billion in net sales," and in charge of global snacks, "'North America Cereal Co.', with about $2.4 billion in net sales," which will be leading the US, Canadian and Caribbean cereal market, and "'Plant Co.', with about $340 million in net sales," which will be focusing on further investments in plant-based foods in North America.

"Kellogg has been on a successful journey of transformation to enhance performance and increase long-term shareowner value. This has included re-shaping our portfolio, and today's announcement is the next step in that transformation," company CEO Steve Cahillane noted. The company's shares jumped 8.10% in premarket trading after the announcement.

Baha Breaking News (BBN) / AY