Kellogg Plans To Separate Into Three Independent Companies

(RTTNews) - Kellogg Company (K) announced its Board has approved a plan to separate its North American cereal and plant-based foods businesses, via tax-free spin-offs, resulting in three independent public companies. The spin-offs are intended to result in tax-free distributions of North America Cereal Co. and Plant Co. shares to Kellogg shareowners.

The planned spin-offs will result in a Global Snacking Co. that is expected to enhance its leadership position in the global snacking, international cereal and noodles, and North America frozen breakfast categories. The company's three international regions - Europe, Latin America, and AMEA - will remain almost entirely intact within Global Snacking Co. Steve Cahillane will remain Chairman and CEO.

The company plans to separate North America Cereal Co. as an independent business through the spin-off. North America Cereal Co. is a leader in cereal in the U.S., Canada, and Caribbean.

Kellogg said it also plans to separate Plant Co. as an independent business through the spin-off, while also exploring other strategic alternatives, including a possible sale.

Shares of Kellogg Company were up 8% in pre-market trade on Tuesday.