Private equity firm Cerberus Capital Management, which owns a stake in grocer Albertsons , and billionaire investor Dean Metropoulos teamed up in an unsuccessful bid for cereal maker WK Kellogg , according to three sources familiar with the matter.

WK Kellogg, the Battle Creek-based maker of cereals, agreed to the sale as the company has struggled with weakening consumer demand due to inflation.

The transaction marks the end of Battle Creek's run as a quintessential company town in Michigan, where the name "Kellogg" graces almost everything.

The Italian candy maker behind Ferrero Rocher is close to buying the cereal conglomerate for about $3 billion, [The Wall Street Journal reported](

The Italian maker of Ferrero Rocher and Nutella has set its sights on WK Kellogg as the U.S. cereal maker struggles to get traction.

Officials are welcoming an Italian sweets company to town as it finalizes a mega deal to buy an iconic Michigan company that helped redefine breakfast. Ferrero Group — the makers of Ferrero Rocher, Nutella and a slew of other tasty treats — is set to buy Battle Creek-based WK Kellogg Co,