New names for the spin-offs will be announced later, and the spinoffs are expected to be completed by the end of 2023.
“Kellogg has been on a successful journey of transformation to enhance performance and increase long-term shareowner valuem said Kellogg CEO Steve Cahillane in a statement. “These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities.”
Shares rose more than 8% in premarket trading.
By far, the snacking business will be the largest new company. Kellogg said it raked in more than $11 billion in sales last year, and it’s a “higher-growth company than today’s Kellogg Company.” About 60% of its sales come from Pop-Tarts, Nutri-Grain, Pringles and Cheez-It.