Candy maker Mars to buy snacks maker Kellanova for $36 billion
20 Aug 2024
American multinational confectionery and pet food manufacturer Mars Incorporated has agreed to acquire Cheez-It maker Kellanova, better known as Kellogg’s, in a $36 billion all-cash deal.
Under the deal, Mars will pay $83.50 per share for Kellanova, which is a 33 per cent premium to the stock’s closing price on 2 August.
Based in Chicago, Illinois, US, Kellanova is known for iconic snacking brands, including Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, NutriGrain and Rxbar, as well as international food brands such as Kellogg’s, Eggo and MorningStar Farms.
The nearly 100-year-old company has a presence in 180 markets across the world, and employs about 23,000 people. The company reported 2023 net sales of more than $13 billion.
Mars has a product portfolio that includes billion-dollar snacking and confectionery brands such as Snickers, M&M’s, Twix, Dove and Extra, as well as Kind and Nature’s Bakery.
Mars also has 10 pet care brands with over $1 billion in annual sales.
With more than 150,000 employees and dealers across its petcare, snacking and food businesses, Mars reported 2023 net sales of more than $50 billion.
The deal, which is the biggest deal so far this year, has been unanimously approved by the board of directors of Kellanova. The transaction is subject to approval by Kellanova shareholder and customary closing conditions, including regulatory approvals. The deal is expected to close in the first half of 2025..
Mars plans to finance the acquisition through a combination of cash and debt.
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