(WXY) — Michigan-based Kellogg Company announced Tuesday a plan that will separate its two businesses into three new, independent public companies.
According to Kellogg Company, the plan will separate its North American cereal and plant-based foods businesses.
Under the separation, the three businesses will be a global snacking business that has about $11.4 billion in net sales. It will focus on global snacking, international cereal and noodles, and North American frozen breakfast.
The North America cereal company has about $2.4 billion in net sales and will be a leading cereal company in the U.S., Canada and Caribbean.
Finally, the plant company has about $340 million in net sales and will focus on plant-based foods, anchored by the MorningStar Farms brand.
"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," said Steve Cahillane, Kellogg Company's Chairman and Chief Executive Officer. "These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities. In turn, each business is expected to create more value for all stakeholders, and each is well positioned to build a new era of innovation and growth."
The names of the new company will be announced at a later date.
The North America cereal company and plant company will remain headquartered in Battle Creek, while the snacking company will have dual campuses in Battle Creek and Chicago with corporate headquarters in Chicago.
