Kellogg filed a Form 10 this week with the U.S. Securities and Exchange Commission, signaling the latest step in its bid to spin off its businesses.
In the press release announcing the SEC filing, CEO Steve Cahillane said it marks an important step in the company’s transition.
“As stand-alone companies, Kellanova and WK Kellogg Co will benefit from an enhanced focus that will enable them to better direct their resources toward their distinct strategic priorities, unlocking value for shareowners,” Cahillane said.
In March, the company announced the new names of its snacking and cereal businesses, Kellanova and WK Kellogg Co, respectively. Cahillane told Food Dive the Kellogg’s branding will remain on products because of its relevance with consumers.
In the SEC filing, the company detailed information about how WK Kellogg Co’s brands will operate under the new business after the split occurs. Kellogg said the two companies will operate with more flexibility.
The maker of Frosted Flakes and Pringles said it is expecting to complete the transaction by the fourth quarter. Cahillane will stay on as the CEO of Kellanova, focused on building on its momentum in its snacking division. At a Wall Street Journal conference last month, the executive said the split will help it compete with other snacking giants and appease investors.
Kellanova’s assets resulted in $12.6 billion in sales in 2022, making up roughly 80% of the company’s total sales. WK Kellogg Co, its cereal brands, amassed $2.7 billion in sales last year, it said. Cahillane told Food Dive Kellogg expects two distinct cultures to emerge within the new businesses, and Kellanova’s strategy will be shaped by its status as an international snacking company.
In June, Kellogg’s board of directors approved the plan to split the businesses, and will hold a final vote of approval in the fourth quarter, according to the press release.