BATTLE CREEK, MI (WNWN/WTVB) – Kellogg Company announced on Tuesday that its Board of Directors has approved a plan to separate its North American cereal and plant-based food businesses, via tax-free spin-offs, resulting in three independent public companies.
The three companies, whose names will be determined later, would be known as “Global Snacking Co.”, “North America Cereal Co.” and “Plant Co.”.
“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.”
According to a statement released by the company, Kellogg felt that after several years of transformation and improving results, it was the right time to separate these businesses so that they may pursue their particular strategic priorities.
North America Cereal Co. and Plant Co. will both remain headquartered in Battle Creek. Global Snacking Co. will maintain dual campuses in Battle Creek and Chicago with its corporate headquarters located in Chicago. Kellogg Company’s three international regions’ headquarters in Europe, Latin America, and AMEA will remain in their current locations.
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