Kellogg Company announced Tuesday morning it would be splitting its North American cereal and foods business into three independent public companies.
The three companies, for now, will be known as Global Snacking Co., North America Cereal Co. and Plant Co., but a new corporate name will be selected in the coming months.
Kellogg Company says North America Cereal Co. and Plant Co. will both remain headquartered in Battle Creek, while Global Snacking Co. will maintain dual campuses in Battle Creek and Chicago, Illinois, with its corporate headquarters located in Chicago.
Global Snacking Co. will consist of about 80% of the Kellogg portfolio.
The company plans to separate its U.S., Canada and Caribbean cereal business to create a leading independent cereal company, which will be called North America Cereal Co. until a new name is announced in the coming months.
The third company will, for now, be called Plant Co. and is intended to be a profitable, pure play, plant-based foods company.
"The time is right now, because we've got lots of strength. We feel like our top line has been reliably restored to, you know, to terrific growth, and this is the just the next unlock in that transformation journey and deploying for growth by shaping a growth portfolio, and we're excited about the prospects this gives us," said Kellogg Company Chairman and Chief Executive Officer Steven Cahillane.
Shares of Kellogg rose almost 4% in Tuesday morning trading.
Watch the announcement:
The city of Battle Creek declined comment saying they wanted to wait until after Wednesday's stakeholder's meeting.
Both the Mayor and City Manager said they will provide comment on the company's transformation following that meeting.