Kellogg to split into three companies; corporate HQ moves to Chicago

Kellogg, the maker of Frosted Flakes, Rice Krispies and Eggo, said Tuesday it split itself into three separate companies focused on grains, snacks and plant foods.

Kellogg’s, which also owns the plant-based food company MorningStar Farms, has said the spin-off of the yet-to-be-named grain and plant-food companies should be completed by the end of next year.

The company said its US, Canadian and Caribbean grain and vegetable divisions together accounted for about 20% of net sales last year, while its other operations accounted for about 80% of sales.

The company’s headquarters will move from Battle Creek, Michigan, to Chicago, but it will maintain dual headquarters in both cities for its snack business.

Kellogg’s three global headquarters in Europe, Latin America and AMEA will remain in their current locations.

Shares of Kellogg rose 7% in pre-market trading.

Companies including General Electric, IBM and Johnson & Johnson have been splitting at an accelerating pace, but such splits are rarer for food manufacturers. The last major industry split was in 2012, when Kraft split to create Mondelez.

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