CNBC reports:

Kellogg announced Tuesday that it plans to separate into three independent public companies, sectioning off its iconic brands into distinct snacking, cereal and plant-based companies.

Shares of the company rose 8% in premarket trading on the news.

Kellogg’s North American cereal business and plant-based division together accounted for about 20% of its revenue last year. The remaining business includes its snacks, noodles, international cereal and North American frozen breakfast brands, which altogether represented about 80% of its 2021 sales.

“These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities,” CEO Steve Cahillane said in a statement.

The company said it would also explore other strategic alternatives, including a potential sale, for its plant-based business, beyond the planned spinoff.

Kellogg said it expects the tax-free spinoffs will be completed by the end of 2023. Names for the new companies have not been decided yet, and proposed management teams for the two spinoffs will be announced at a later date. Cahillane will stay on as chief executive of the company focused on global snacking…

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