Kellogg Company has announced plans to separate into three independent public companies via tax-free spinoffs by the end of 2023.

Though the names of the spinoffs have not yet been determined, Kellogg said it would create a global snacking company that would also represent its North American frozen breakfast and international cereal and noodles businesses. It would have net sales of about $11.4 billion. Steve Cahillane will continue as chairman and CEO.

Kellogg would also create a company for its cereal business in the U.S., Canada and the Caribbean. It would have net sales of about $2.4 billion.

The third company would represent Kellogg’s plant-based foods, anchored by the MorningStar Farms brand. It would have about $340 million in net sales. Kellogg said it would explore other strategic alternatives, including a possible sale.

"Kellogg has been on a successful journey of transformation to enhance performance and increase long-term shareowner value,” Cahillane said. “This has included re-shaping our portfolio, and today's announcement is the next step in that transformation. These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities. In turn, each business is expected to create more value for all stakeholders, and each is well positioned to build a new era of innovation and growth."

Kellogg said its portfolio has expanded geographically and shifted toward growing businesses, particularly in snacking categories. To achieve this, the company has directed resources and investments toward growth categories and markets around the world, made several acquisitions and partnerships in emerging markets, and strengthened its snacks business through acquisitions, divestitures, and the freeing up of resources by exiting from direct-store delivery. 

As independent companies, Kellogg said all three businesses will be better positioned to focus on their distinct strategic priorities, shape their own corporate cultures, and pursue profitable growth with more operational flexibility.

The North American cereal company and the plant-based company will remain headquartered in Battle Creek, Michigan, while the global snacking company will have campuses in Battle Creek and Chicago. Proposed management for the spinoffs will be announced at a later date.