Kellogg Splits Into Two Firms, and Shares of Both Tumble in First Session After Separation

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Key Takeaways

  • Kellogg split into two separate, publicly traded companies, and shares of both tumbled in their first day of trading after the separation.
  • Kellanova, which kept the “K” ticker symbol, is focused on snacks and other foods, while WK Kellogg, with the ticker symbol “KLG,” is home to the traditional cereal brands.
  • The transaction distributed all of the WK Kellogg shares to Kellanova investors, who received one KLG stock for every K share they owned.

Kellogg officially split into two distinct, publicly traded companies, and shares of both tumbled on Monday in their first trading session since the separation.

Kellanova (K), which kept the old Kellogg trading symbol “K,” is the home of the company’s global snacking, international cereal and noodles, and North America frozen foods products, including Pringles and Pop-Tarts. WK Kellogg (KLG) houses the traditional Kellogg cereal brands, such as Corn Flakes and Fruit Loops. It trades under the symbol “KLG.”

Kellanova noted that the separation was achieved through the distribution of all WK Kellogg shares to Kellanova investors as of 12:01 a.m. ET October 2. Kellanova shareholders received one share of WK Kellogg stock for every four shares of Kellanova they owned as of September 21.

Kellanova CEO Steve Cahillane said with the split, Kellanova “has entered a new era with a new name and a new ambition.” He had argued last month when the board approved the move that the separation “will produce two stronger companies and create substantial value for shareowners.”

WK Kellogg explained that as a standalone company, it is “focused on winning in cereal.” Gary Pilnick, the former vice chair of corporate development and chief legal officer at Kellogg, is its CEO.

Even before the breakup, shares of Kellogg were trading near their lows for the year.

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