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.

The Ferrero Group said Thursday that it will pay $23 for each Kellogg share, or about $3.1 billion. The transaction includes WK Kellogg Co.’s six manufacturing plants, and the marketing and distribution of its breakfast cereals across the United States, Canada and the Caribbean.

Kellogg was founded in Battle Creek, Michigan, in 1906 after its founder accidentally figured out how to make flaked cereal while he was experimenting with granola. Kellogg still makes Corn Flakes, as well as Froot Loops, Special K, Frosted Flakes, Rice Krispies and other cereals.

Kellogg now has four U.S. plants, which are located in Michigan, Pennsylvania, Tennessee and Nebraska. It also has a plant in Mexico and a plant in Canada. The company has around 3,000 employees.

The current company was formed in 2023, when Kellogg’s snack brands like Cheez-Its and Pringles were spun into a separate company, Kellanova. M&M’s maker Mars Inc. announced last year it planned to buy Kellanova in a deal worth nearly $30 billion.

Ferrero Group, which was founded in Italy in 1946, has been trying to expand its U.S. footprint. In 2018, it bought Nestle’s U.S. candy brands, including Butterfinger, Nerds and SweeTarts. In 2022, it bought Wells Enterprises, the maker of ice cream brands like Blue Bunny and Halo Top.

WK Kellogg’s brands have been struggling with a long-term decline in U.S. cereal consumption as consumers turned to protein bars, shakes and other breakfast items. At the start of July, U.S. cold cereal sales were down 6% compared to the same period in 2022.

But Brad Haller, a senior partner for mergers and acquisitions at West Monroe, said Kellogg’s large distribution network and relationship to grocers is appealing to Ferrero, since it will help Ferrero negotiate pricing and positioning for its products. The purchase also helps Ferraro expand beyond snacks and sweets and into a meal category, he said.

But Haller said Ferrero might look on Kellogg’s stable of brands with a more critical eye and may wind up cutting brands or shutting down manufacturing plants.

“As Americans, these brands are iconic and beloved by us, but a European company buying these wouldn’t have the same nostalgia,” Haller said.

Kellogg has had other issues.

Last fall, dozens of people rallied outside the company’s Battle Creek headquarters demanding that Kellogg remove artificial dyes from its cereals. Earlier this year, Kellogg said it was reformulating cereals sold to schools to remove artificial dyes.

Ferrero’s acquisition, which still needs approval from Kellogg shareholders, is expected to close in the second half of the year. Once the transaction is complete, Kellogg’s stock will no longer trade on the New York Stock Exchange, and the company will become a Ferrero subsidiary.