Mars to acquire snack maker Kellanova in $36 billion deal

Mars will acquire Kellanova for $35.9 billion in cash, tying together some of the largest U.S. candy and snack brands, the companies announced Tuesday. The M&M owner Mars is acquiring the Kellogg spin-off company for $83.50 per share, according to the press release. The addition of Kellanova, which separated from its parent company in 2023, will bring massive brands like Pringles and
Mars to acquire snack maker Kellanova in $36 billion deal

Mars will acquire  Kellanova for $35.9 billion in cash, tying together some of the largest U.S. candy and snack brands, the companies  announced Tuesday.

The M&M owner Mars is acquiring the  Kellogg spin-off company for $83.50 per share, according to the press release. The addition of Kellanova, which separated from its parent company in 2023, will bring massive brands like Pringles and Cheez-Its to Mars’ snacking unit.

“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,” said Steve Cahillane, chairman, president and CEO of Kellanova, in a statement.

The move comes after Kellogg  separated its business last year, with its cereal segment trading under WK Kellogg Co, and the remaining snacking and plant-based brands under Kellanova. Kellanova’s 2023 net sales topped $13 billion.

After years of high inflation, some consumers are pulling back on spending and struggling to afford brand-name snacks,  making acquisitions more attractive. Many grocers have leaned into private-label options to entice consumers who are looking for value.

More from CNBC

  • Mortgage refinancing surges 35% in one week, as interest rates hit lowest level in over a year
  • Apartments, hockey rinks and Amazon warehouses: Macy’s closures will spark change at shopping malls
  • Stocks are little changed as inflation rate slows to 2.9%

Mars’ buyout aims to create a “broader, global snacking business” through recognized and popular brands, according to Andrew Clarke, global president of Mars Snacking.

“The Kellanova brands significantly expand our Snacking platform, allowing us to even more effectively meet consumer needs and drive profitable business growth,” Clarke said in a statement.

The growing snacking category includes brands marketed as healthier. Kellanova will bring products like RXBAR and Nutri-Grain to the Mars business, complementing KIND and other Mars snacks, according to the release.

The transaction is expected to close in the first half of 2025, according to the release.

,

Total
0
Shares
Leave a Reply
Related Posts
Who Is Marcus Smart’s Wife? All About Maisa Hallum
Read More

Who Is Marcus Smart’s Wife? All About Maisa Hallum

Marcus Smart and his wife, Maisa Hallum, are going to be parents! The Memphis Grizzlies player and Hallum, who tied the knot in September 2023, are currently expecting their first child — a baby boy they've already named Zayn. The couple announced the happy news on Instagram in August 2024. Shortly after their wedding, Smart
PETER VAN ONSELEN: Inside story of how Labor insiders are growing frustrated about the ‘Three Amigos’ who REALLY run Australia – and the BIG names who Albo won’t let into his inner circle
Read More

PETER VAN ONSELEN: Inside story of how Labor insiders are growing frustrated about the ‘Three Amigos’ who REALLY run Australia – and the BIG names who Albo won’t let into his inner circle

A Labor MP I've known for years who has seen it all was reflecting on a growing frustration permeating across the Labor caucus: A concern that Team Albo is increasingly a closed shop run by an inner sanctum which pushes others to the outer edges.  The MP suggested that the only opinions that matter to