Kellogg explained that spinning off the companies will “better position each business to unlock its full potential,” especially as the company has grown with acquisitions in recent years. Its stock is up more than 4% for the year. Shares rose more than 8% in premarket trading. “These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities.” “Kellogg has been on a successful journey of transformation to enhance performance and increase long-term shareowner value, said Kellogg CEO Steve Cahillane in a statement. The board of directors has approved the plans and headquarters for the three units will remain unchanged. New names for the spin-offs will be announced later, and the spinoffs are expected to be completed by the end of 2023. And, lastly, a new “pure-play plant-based foods company” will be anchored by its MorningStar Farms brand. (K) North America cereal unit, which includes Raisin Bran and Rice Krispies, its snacking unit will become a second company, including Cheez-Its and Pringles. Kellogg is splitting into three different companies in a major shakeup for the 116-year-old company.
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