On June 21, 2022, Kellogg Company (NYSE: K) announced that its Board of Directors approved a plan to separate its North American cereal and plant-based foods businesses through tax-free spin-offs, creating three independent public companies. These companies, tentatively named "Global Snacking Co.," "North America Cereal Co.," and "Plant Co.," are set to unlock significant standalone potential.

"Global Snacking Co." will lead in global snacking, international cereal, noodles, and North American frozen breakfast with an estimated $11.4 billion in 2021 net sales. "North America Cereal Co." will focus on U.S., Canada, and Caribbean cereal markets with $2.4 billion in net sales. "Plant Co." will specialize in plant-based foods, anchored by MorningStar Farms, with $340 million in net sales.

The spin-offs are expected to be completed by the end of 2023, pending customary approvals, including IRS tax rulings and SEC filings. Goldman Sachs served as the lead financial advisor, alongside Morgan Stanley & Co. LLC, with Kirkland & Ellis LLP acting as legal advisor. These strategic moves are aimed at enhancing focus, agility, and growth potential across each new entity, allowing them to better allocate resources and pursue their distinct strategic priorities.