M&M’s maker Mars has struck a deal worth nearly $30 billion to buy Kellanova, marking one of the food industry’s biggest deals and expanding the candy maker’s brand portfolio to include salty snacks such as Pringles and Cheez-It.
Kellanova sells many of the former company’s most profitable brands, including Eggo, Town House, MorningStar Farms and Rice Krispies Treats.
Mars makes M&M’s, Lifesavers, Juicy Fruit gum and Skittles as well as Pedigree and Royal Canin pet foods, among other products.
“The Kellanova brands significantly expand our snacking platform, allowing us to even more effectively meet consumer needs and drive profitable business growth,” Andrew Clarke, global president of Mars Snacking, said in a statement.
Once it’s complete, Kellanova will become part of Mars Snacking.
The maker of MandM, Mars, has agreed to pay almost $30 billion to acquire Kellanova, making this one of the largest deals in the food industry and adding salty snack brands like Pringles and Cheez-It to its portfolio.
Kellanova was established the previous year when the Kellogg Co. Divided into three business entities. Many of the most successful brands of the previous company, such as Eggo, Town House, MorningStar Farms, and Rice Krispies Treats, are sold by Kellanova. It employed about 23,000 people and had net sales of over $13 billion the previous year.
Through the acquisition, Mars would gain more traction in the market for salty snacks. The company is best known for its chocolates, candies, and pet food, but it also owns brands like Combos and Ben’s Original. Among its many products are M&Ms, Lifesavers, Juicy Fruit gum, Skittles, Pedigree, and Royal Canin pet foods.
However, as snacking habits have changed, sales of some of those products, like gum, have faltered recently. The agreement facilitates Mars’s entry into growth markets.
The acquisition would enable Mars to make a stronger push into the savory snack market, where it currently has very little traction, according to Neil Saunders, managing director of GlobalData. “There is significant logic behind Mars acquiring Kellanova,” Saunders mentioned. The market for savory snacks is expanding more quickly than that of confections, where Mars currently holds a dominant position. “.
Since J, it is the largest deal in the industry. M. For $5.56 billion last year, Smucker acquired Hostess, making it one of the biggest acquisitions of 2024—second only to ExxonMobil’s $60 billion purchase of Pioneer Natural Resources.
In a statement, Mars Snacking’s global president Andrew Clarke said, “The Kellanova brands significantly expand our snacking platform, allowing us to even more effectively meet consumer needs and drive profitable business growth.”.
Prices for Kellanova’s stock.
Mars Company. claimed on Wednesday that it will pay cash of $83.50 for each share. The business estimated that the deal was worth $359.9 billion in total, including debt.
Kellanova’s stock increased $5.50, or 7.4 percent, to $800.00 during Wednesday’s early trading. The largest privately held corporation in the United States is Mars, with its headquarters located in McLean, Virginia. S.
The first part of 2019 is when the deal between Mars and Kellanova is anticipated to close. Kellanova will join Mars Snacking once it’s finished. Chicago will continue to be the corporate headquarters.
The other Kellogg split company was WK Kellogg Co. kept cereal brands like Froot Loops, Frosted Flakes, and Raisin Bran, despite their recent struggles with declining sales. It has no bearing on the transaction.
spending by consumers.
In a time when growing costs are pressuring customers and forcing many businesses to impose price caps, the merger might also benefit Kellanova. Many consumers, according to economists, seem to be going back to pre-pandemic levels, when most businesses believed they couldn’t raise prices significantly without losing customers.
Frank Mars founded Mars in 1911 and began producing and distributing butter cream candies out of his Tacoma, Washington, home. After relocating to Chicago in 1929, the company debuted the Snickers bar the following year.
Mars’s growth has been consistent with acquisitions. In 1935, it made its foray into the pet food industry by acquiring a U. G. 1986, they purchased the Dove ice cream brand and dog food brand. It paid $23 billion to acquire the Wrigley chewing gum company in 2008.
