WK Kellogg to Ferrero Group

Packaged Foods/Jul 2025/Goldman Sachs, Morgan Stanley

Deal Information

Target

WK Kellogg

Acquiror

Ferrero Group

Sector

Packaged Foods

Target Type

Public

Acquiror Type

Strategic

Advisors

Goldman Sachs, Morgan Stanley

Enterprise Value

$2.9B

EV / LTM Sales

EV / LTM EBITDA

10.3x

EV / Fwd EBITDA

Comparable transactions cited by the advisor, excluding the subject transaction.

EV/LTM EBITDA selected range: 8.4x - 12.5x

5 comps


Jul 2016	Hostess Brands L.L.C.	Gores Group Holdings	-	-	12.1x	-
Apr 2017	Weetabix Food Co.	Post Holdings Inc.	-	-	11.0x	-
Apr 2019	Keebler and certain other brands	Ferrero Group	-	-	9.3x	-
Feb 2021	Planters	Hormel Foods Corporation	-	-	12.5x	-
Sep 2024	Yoplait and certain other brands	Lactalis	-	-	8.4x	-
	Mean			-	10.7x	-
	Median			-	11.0x	-

AV/LTM EBITDA selected range: 9.5x - 11.5x

6 comps


Jan 2013	Skippy	Hormel Foods Corporation	-	-	10.7x	-
Apr 2017	Weetabix Food Co.	Post Holdings Inc.	-	-	11.0x	-
Apr 2019	Keebler and certain other brands	Ferrero Group	-	-	9.3x	-
Dec 2023	Shearers Foods	Clayton Dubilier & Rice	-	-	10.0x	-
Sep 2024	Yoplait and certain other brands	Lactalis	-	-	8.4x	-
Jan 2025	Sauer Brands Inc.	Advent International	-	-	11.0x	-
	Mean			-	10.1x	-
	Median			-	10.3x	-

Discount rate and terminal value assumptions the advisor selected for its discounted cash flow analysis.

WACC: 7.5% – 8.5%
Terminal method: Both
Terminal assumption: Exit multiple 8.0x – 9.5x (Terminal year EV/LTM EBITDA); Perpetuity growth 0.2% – 2.2%
Forecast basis: July Projections (primary/corrected); June Projections (original, used in July 10 Present… more
July Projections (primary/corrected); June Projections (original, used in July 10 Presentation)
Forecast period: Last three quarters of fiscal year 2025 and fiscal years 2026 through 2029

WACC: 7.0% – 7.7%
Terminal method: Exit multiple
Terminal assumption: 8.0x – 9.5x (LTM Adjusted EBITDA)
Forecast basis: June Projections and July Projections
Forecast period: last three quarters of fiscal year 2025 through fiscal year 2029

Advisor	WACC	Terminal method	Terminal assumption	Forecast basis	Forecast period	Filing
Goldman Sachs	7.5% – 8.5%	Both	Exit multiple 8.0x – 9.5x (Terminal year EV/LTM EBITDA); Perpetuity growth 0.2% – 2.2%	July Projections (primary/corrected); June Projections (original, used in July 10 Present… more July Projections (primary/corrected); June Projections (original, used in July 10 Presentation)	Last three quarters of fiscal year 2025 and fiscal years 2026 through 2029	Open
Morgan Stanley	7.0% – 7.7%	Exit multiple	8.0x – 9.5x (LTM Adjusted EBITDA)	June Projections and July Projections	last three quarters of fiscal year 2025 through fiscal year 2029	Open