The Kellogg cereal business, an iconic Michigan brand, is being sold to Ferrero, an Italian chocolate and sweets company.

Italy's Ferrero has continued its U.S. spending spree with its proposed acquisition of famous cereal maker WK Kellogg amid wider food manufacturer consolidation.

The Ferrero Group has entered a definitive agreement to acquire Battle Creek-based WK Kellogg Co. (NYSE: KLG) for $23 per share in cash, or $3.1 billion. The acquisition includes the manufacturing, marketing and distribution facilities of WK Kellogg’s portfolio of breakfast cereals across the United States,

WK Kellogg Co’s headquarters is in Battle Creek. After the transaction closes, Battle Creek will remain a core location for the company and will be Ferrero’s headquarters for North America cereal, a news release from WK Kellogg states.

The deal, which still needs approval from WK Kellogg Co.’s shareholders, is expected to close in the second half of the year.

BATTLE CREEK, Mich. — WK Kellogg was purchased by Italian candy manufacturer, Ferrero, on Thursday. Ferrero purchased the food distributor for $3.1 billion.

Kellogg, the maker of such brands as Frosted Flakes, Froot Loops, Rice Krispies and Raisin Bran, began business in 1906 as the Battle Creek Toasted Corn Flake Co., before becoming Kellogg Toasted Corn Flake Co. in 1909.