Published by Global Banking & Finance Review®
Posted on July 11, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleCerberus and Dean Metropoulos bid for WK Kellogg but lost to Ferrero Group's $3.1 billion offer, highlighting active food industry investments.
By Abigail Summerville
-Private equity firm Cerberus Capital Management, which owns a stake in grocer Albertsons, and billionaire investor Dean Metropoulos teamed up in an unsuccessful bid for cereal maker WK Kellogg, according to three sources familiar with the matter.
The consortium, which was being advised by investment banks UBS and Macquarie Capital, ultimately lost out to private, family-owned Ferrero Group, which on Thursday announced an agreement to acquire WK Kellogg for around $3.1 billion.
However, the offer from Cerberus and Metropoulos was considered a serious alternative to Ferrero and has caused industry insiders to wonder about a possible future target for the pair, two of the sources said. Both Cerberus and Metropoulos have histories of investing in the food industry.
WK Kellogg, Cerberus, UBS and Macquarie declined to comment. Metropoulos & Co did not immediately respond to a comment request.
Dealmaking in the food space has picked up steam in recent months as owners focus on core names and offload underperforming brands. There has been a relatively steady supply of buyers for these divestments, aiming to turn around their fortunes.
Cerberus is the top shareholder in grocery chain Albertsons, but it has not made a big bet on a consumer or retail company in years. Its offer for WK Kellogg shows the firm still has a desire to invest in the sector, the sources said.
Meanwhile, the investment firm of Greek-American billionaire Metropoulos - Metropoulos & Co - acquired Nestlé Waters North America in partnership with One Rock Capital Partners in 2021. The firm is known for making investments in numerous consumer names, including Hostess Brands, Utz and Pinnacle Foods.
Kellogg split into two in 2023, creating WK Kellogg to house cereal brands and Kellanova to house its other brands. M&M's owner Mars agreed to buy Kellanova for $36 billion last year.
(Reporting by Abigail Summerville in New York; Editing by David French and Matthew Lewis)
The main bidders for WK Kellogg were private equity firm Cerberus Capital Management and billionaire investor Dean Metropoulos.
The bid for WK Kellogg was ultimately won by the family-owned Ferrero Group.
Cerberus' bid for WK Kellogg indicates that the firm still has a desire to invest in consumer and retail companies, despite not making significant bets in years.
There has been an increase in dealmaking within the food space as owners focus on core brands and divest underperforming ones.
In 2023, Kellogg split into two entities: WK Kellogg, which houses cereal brands, and Kellanova, which contains its other brands.
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