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.

Italian confectioner Ferrero, known for brands like Nutella and Kinder, is buying the century-old U.S. cereal company WK Kellogg in an effort to expand its North American sales.

Shares of cereal maker WK Kellogg ( KLG 30.63%) rose 34% this week as of noon E.T. Thursday, according to data provided by S&P Global Market Intelligence. One week after being added to a slew of Russell Value indexes, it turns out WK Kellogg was indeed a good value investment -- at least in the eyes of Ferrero.

W.K. Kellogg Co. has shown a strong commitment to Battle Creek since its formation,” said Interim City Manager Ted Dearing. “We are hopeful that this commitment will continue under Ferrero’s ownership.

Shares of WK Kellogg ( KLG) surged 30% Thursday as the maker of Froot Loops and Frosted Flakes announced it had reached a deal to be acquired by Italian sweets company The Ferrero Group for $23 per share in cash, or about $3.1 billion.

WK Kellogg—whose brands include Froot Loops, Frosted Flakes and Rice Krispies—was spun off from Kellogg in 2023, a move that separated its North American cereal business from its remaining global snacking business, which was named Kellanova.

Concerns about food processing and sugar intake have been factors in dimming some people's enthusiasm for ready-to-eat cereal.

WK Kellogg Co. jumped nearly 30% on July 10 following the announcement from Italian food leader Ferrero regarding a $3.1 billion acquisition, inclusive of debt.