(Photo by Tim Boyle/Getty Images)

Kellogg Company, which is based in Michigan, has announced a plan that will separate its two chief businesses into three new and wholly independent public companies.

Kellogg will separate its North American cereal and plant-based foods businesses, according to a release. Now, the three businesses will total about $11.4 billion in net sales. The company plans to focus on global snacking, international cereal and noodles and North American frozen breakfast. Kellogg will announce the names of the new company down the road.

“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,” Steve Cahillane, Kellogg Company’s Chairman and Chief Executive Officer, said in a statement. “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.”

The cereal and plant-based meat companies will stay headquartered in Battle Creek, Michigan. Meanwhile, the snack company, which makes up about 80% of Kellogg’s current sales, will have dual campuses in Battle Creek and Chicago, as well as its headquarters in Chicago.

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