Sign In  |  Register  |  About Santa Clara  |  Contact Us

Santa Clara, CA
September 01, 2020 1:39pm
7-Day Forecast | Traffic
  • Search Hotels in Santa Clara

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Announcing Intentions to Split Into Three Separate Firms, Kellogg Stock Surged on Tuesday.

You should expect K Kellogg (ticker: K) to separate its cereal and plant-based operations in the U.S. and Canadian markets. The firms’ names will be decided upon at a later time.

Kellogg’s “Global Snacking Co.” will include its foreign snacks, cereals and noodles, and North American frozen breakfast. Pringles, Cheez-It, and Nutri-Grain are just a few of Kellogg’s predicted $11.4 billion in net sales this year. The company’s CEO, Steve Cahillane, will stay CEO.

Kellogg says it will concentrate on inventories and profit margins in the near term after a series of supply problems in 2021. Proposed management will be announced at a later time by the firm.

In the future, “Plant Co.” will be a plant-based foods corporation that predominantly operates in North America, but with an eye toward worldwide development. The MorningStar Farms brand is expected to generate $340 million in net sales for the company.

These companies, according to Cahillane, “have substantial independent potential, and an expanded focus will allow them to better manage their resources toward their specific strategic goals.” Businesses are expected to provide greater value for all their stakeholders and are well-positioned to usher in a new age of innovation and development, according to this statement.

All of the spinoffs are tax-free. Stock in the two spinoff firms would be distributed to Kellogg shareholders in proportion to their holdings at the time of each separation. North America Cereal Co. is expected to be spun off before Plant Co. by the end of 2023, according to the firm.

Because spinoffs theoretically enable the components of a firm to trade at greater prices than if they were confined within the company, they have been a popular method for corporations to unlock value for investors in recent years. When it comes to spinoffs, the process is seldom simple and may take years to complete and much longer for the spun-off business to begin producing substantial profits.

In premarket trade on Tuesday, shares of Kellogg were up 8% to $73.

The post Announcing Intentions to Split Into Three Separate Firms, Kellogg Stock Surged on Tuesday. appeared first on Best Stocks.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 SantaClara.com & California Media Partners, LLC. All rights reserved.