The deal is one of the biggest in the snack food industry this year
Snickers maker Mars has agreed to acquire Pringles maker Kellanova (K) for $36 billion, the confectionary giant said in a statement on Wednesday. The sweet-and-salty deal, one of the largest in the snack food industry this year, is set to enhance Mars’ global snacking portfolio and combine two well-established companies with complementary brands.
Shares of Kellanova rose by 7% during early hours, trading at $80. Mars is offering about $83.50 per share, valuing Kellanova at around $28 billion.
“Kellanova has been on a transformation journey to become the world’s best snacking company, and this opportunity to join Mars enables us to accelerate the realization of our full potential and our vision,” Steve Cahillane, Kellanova’s CEO, said in a statement.
Cahillane said the all-cash transaction will maximize shareholder value, and will provide its employees, customers, and suppliers, with “new and exciting opportunities.”
The deal could bode well for Kellanova, which focuses on making cereals and snacks like Pringles, Cheez-It, and Pop-Tarts. The company reported net sales of $13 billion in 2023. Meanwhile, Mars, which specializes in chocolate staples like Snickers, M&M’s, and Twix, earned over $50 billion in sales during the same period.
Reuters first reported in early August that the deal was still pending as other suitors, including Oreo maker Mondelez $MDLZ International (MDLZ) and chocolate giant Hershey’s, also considered whether to buy Kellanova.
Nonetheless, Mars CEO Poul Weihrauch said the company looks forward to further developing “a sustainable snacking business that is fit for the future.” He added that Mars will honor Kellanova’s “heritage and innovation” while leveraging the strengths of both companies to enhance consumer choice and innovation.
Once the deal is finalized in the first half of 2025, Kellanova will join Mars, under the leadership of Global President Andrew Clark, in Chicago. Meanwhile, Battle Creek, Michigan will continue to be an important central location for Kellanova.
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