The Ferrero Group said Thursday it will buy WK Kellogg Co. in a deal valued $3.1 billion, expanding the Italian food giant's global reach.

Kellogg, which was founded in Battle Creek, Michigan, in 1906, is known for brands including Corn Flakes, Froot Loops, Rice Krispies and Special K. Ferrero's brands include Nutella and Rocher chocolates.

The deal will include manufacturing, marketing and distribution oKellogg's portfolio of cereal brands in the U.S., Canada and the Caribbean, the cereal maker said.

Ferrero will pay $23 for each WK Kellogg share. Kellogg's stock surged more than 35% to to $22.86 in early trade.

In 2023, Kellogg spun of snack brands like Cheez-Its and Pringles into a separate company called Kellanova. M&M's maker Mars announced last year that it planned to buy Kellanova in a deal worth nearly $30 billion.

Brad Haller, a senior partner at consulting firm West Monroe, said in an email that the acquisition signals consolidation in the food and beverage sector, "as global players seek scale and category breadth to navigate shifting consumer preferences and heightened competition."

The deal comes as Ferrero, which was launched Italy in 1946, seeks to broaden its reach in the U.S. and other international markets. In 2018, the company bought Nestle's U.S. candy brands, which include Butterfinger, Nerds and SweeTarts. Four years later, it acquired Wells Enterprises, which is behind ice cream brands Blue Bunny and Halo Top.

The $3.1 billion deal will also provide some financial breathing room to Kellogg.

"Joining Ferrero will provide WK Kellogg Co. with greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market," CEO Gary Pilnick said in a statement.

Kellogg on Tuesday reported $663 million in net sales in its first-quarter earnings, a 6.2% decrease from a year ago. In its earnings statement, the company mentioned that it is ramping up its focus on health and nutrition in response to consumer preferences.

The acquisition is expected to close in the second half of this year, according to Kellogg. After the transaction is completed, the company's shares will no longer trade on the New York Stock Exchange, Kellogg said.

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