(Kellogg) Shares of Kellogg 6% in premarket on Tuesday after announcing plans to split into three independent public companies.
The split will see Kellogg divide into iconic brands of snacking, cereal, and plant-based entities.
Kellogg CEO Steve Cahillane said that the standalone entities would have significant potential. He says the entities will be better positioned to direct resources to strategic priorities.
The company says it will also explore other strategic options that include potential sales for its plant-based businesses.
The company expects tax-free spinoffs to be completed by the end of 2023. The names of the three entities and their management teams will be revealed later, but their headquarters will be unaltered.
The proposed “Global Snacking Co.” controls around $11.4 billion of Kellogg’s net sales, while the “North America Cereal Co.” accounts for $2.4 billion in net sales. The “Plant Co.” controls $340 million of net sales.
K: NYSE is up +6.56%.
