Cerberus Capital Management and consumer sector veteran Dean Metropoulos mounted a serious, though ultimately unsuccessful, bid for cereal maker WK Kellogg, according to a report by Reuters citing unnamed sources familiar with the matter.
A $3.1bn deal for the business was ultimately clinched by Italian confectionery giant Ferrero Group, which announced the acquisition last week.
The Cerberus-Metropoulos consortium, advised by UBS and Macquarie Capital, was considered a strong contender in the sale process and their involvement has fuelled speculation about future food sector plays from the pair, both of whom have deep histories in consumer-focused investing.
Cerberus, best known in the sector for its stake in grocery chain Albertsons, has been relatively quiet on consumer deals in recent years. Metropoulos & Co, meanwhile, which partnered with One Rock Capital to acquire Nestlé Waters North America in 2021, has a track record of high-profile bets in brands like Hostess, Utz, and Pinnacle Foods.
Neither Cerberus, Metropoulos, WK Kellogg, UBS, nor Macquarie commented on the matter.
