Kellogg Company announced plans to split Tuesday, saying it will spin itself off into three separate companies focused on cereal, plant-based foods and snacks. The snacks company will be headquartered in Chicago, the company said in a news release, with campuses in both the city and Battle Creek, Michigan.
The news comes a week after Caterpillar, the mining and construction equipment maker, announced plans to move its corporate headquarters from Deerfield to Irving, Texas, and less than two months after Boeing said it plans to move its headquarters from Chicago to Arlington, Virginia.
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Kellogg’s snacks division, which includes brands like Pringles and Rice Krispies Treats, accounted for 80% of Kellogg’s net sales in 2021, the company said. The cereal and plant-based companies, which together accounted for 20% of net sales, will be headquartered in Battle Creek. All three companies will be publicly traded.
“These businesses all have significant stand-alone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities,” Kellogg chairman and CEO Steve Cahillane said in a statement.
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“In turn, each business is expected to create more value for all stakeholders, and each is well positioned to build a new era of innovation and growth.”
Cahillane will remain chairman and CEO of the snacks company, which had an estimated net sales of $11.4 billion last year, Kellogg said. The company said the management teams for the plant-based and cereal spin offs would be announced at a later date.
More to come.
