Kellogg Co.’s board of directors has approved a plan to separate its North American cereal and plant-based foods businesses via tax-free spin-offs, resulting in three independent public companies.

The three companies, whose names will be determined later, would be the following:

• "Global Snacking Co.", with about $11.4 billion in net sales, will be a leading company in global snacking, international cereal and noodles, and North America frozen breakfast, with iconic brands and strong underlying growth momentum and profitability.

• "North America Cereal Co.", with about $2.4 billion in net sales, will be a leading cereal company in the US, Canada, and Caribbean, with a portfolio of iconic brands and compelling opportunities for investment and profit growth.

• "Plant Co.", with about $340 million in net sales, will be a leading, profitable, pure-play plant-based foods company, anchored by the MorningStar Farms brand, with an opportunity to capitalize on strong long-term category prospects by investing further in North America penetration and future international expansion.

"Kellogg has been on a successful journey of transformation to enhance performance and increase long-term shareowner value.  This has included re-shaping our portfolio, and today's announcement is the next step in that transformation," said Steve Cahillane, Kellogg Co's chairman and chief executive officer. "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."

After several years of transformation and improving results, the company believes it is the right time to separate these businesses so they may pursue their particular strategic priorities.

As independent companies, all three businesses will be better positioned to focus on their distinct strategic priorities, with financial targets that best fit their own markets and opportunities; execute with increased agility and operational flexibility, enabling more focused allocation of capital and resources in a manner consistent with those strategic priorities; realize improved outlooks for profitable growth; and shape distinctive corporate cultures, rooted in Kellogg Co.'s strong values, and rewarding career paths for employees of each company.