Mars, the company behind M&M’s and Snickers, has agreed to acquire Pringles maker Kellanova in a nearly $36 billion deal, marking the largest buyout in the packaged food industry.
The all-cash offer, announced on Wednesday, is the largest-ever acquisition for the family-owned candy giant. Kellanova stated in a regulatory filing that its shareholders would receive $83.50 per share in cash, representing a 33% premium over the stock’s closing price on August 2, prior to Reuters’ initial report of a potential takeover. The deal values Kellanova at $35.9 billion, including debt.
Kellanova was established last year when Kellogg’s spun off its North American cereal business, now known as WK Kellogg Co., from its snack business, which was rebranded as Kellanova.
Kellanova boasts a diverse portfolio of brands, including Pringles, Cheez-It, and Eggo.
“The Kellanova brands significantly expand our snacking platform, allowing us to more effectively meet consumer needs and drive profitable business growth,” said Andrew Clarke, global president of Mars Snacking, in a statement.
Mars, a privately owned company, has been expanding beyond its confectionery roots. In 2020, it acquired Kind North America, the maker of Kind Bars. The company has also invested heavily in its substantial pet care division, which includes the Iams pet food brand, along with animal clinics and hospitals.
“In welcoming Kellanova’s portfolio of growing global brands, we have a substantial opportunity to further develop a sustainable snacking business that is fit for the future,” said Poul Weihrauch, CEO of Mars.
“We will honor the heritage and innovation behind Kellanova’s incredible snacking and food brands while combining our respective strengths to deliver more choice and innovation to consumers and customers.”
Mars noted that the deal, pending approval from Kellanova’s shareholders and regulatory authorities, will broaden its portfolio of health and wellness-linked brands that appeal to younger consumers and help meet demand in rapidly growing markets like Africa and Latin America.
“Snacking is a large, attractive, and durable category that continues to grow in importance with consumers,” Kellanova stated.
Steve Cahillane, president and CEO of Kellanova, remarked, “This is a truly historic combination with a compelling cultural and strategic fit.”
Kellanova, which operates in 180 markets, generated more than $13 billion in revenue last year and employs approximately 23,000 people.
