Kellogg Co. said it will split into three independent companies, sparking a premarket rally in the food conglomerate’s shares.
The maker of Froot Loops and other well-known breakfast cereals said it the companies would focus on global snacking, North American cereals and plant-based foods — giving each greater autonomy and room for growth. The breakup will occur through two tax-free spinoffs, the Battle Creek, Michigan-based company said in a statement Tuesday.
“These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities,” Chief Executive Officer Steve Cahillane said in the statement.
