Kellogg to split into three companies, shares surge

Kellogg is planning to separate into three independent public companies.

Kellogg will section its brands into distinct snacking, cereal and plant-based businesses.

Shares of the company rose 4% in morning trading.

A decade earlier, Kellogg’s purchased Pringles for $2.7 billion, marking its shift to global snacks business.

Kellogg has been weighing spinoffs as a potential strategy since 2018.

CEO Steve Cahillane said all three businesses have “significant” standalone potential, although the company is exploring alternatives including a potential sale for its plant-based business.

Combined, Kellogg’s plant-based division and North American cereal business accounted for about 20% of the company’s revenue last year.

The remaining business includes its snacks, noodles, international cereal and North American frozen breakfast brands.

The spinoffs are expected to be completed by the end of 2023.

Names for the new companies haven’t yet been decided, and proposed management teams for the two spinoffs will be announced by the first quarter of next year.