Mars Inc. has agreed to acquire Kellanova for $83.50 per share in cash, for a total consideration of $35.9 billion, including assumed net leverage. Combining two businesses with complementary portfolios of familiar brands will position Mars to shape the snack food industry, the company notes.
Kellanova produces snacking brands such as Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, NutriGrain and Rxbar as well as food brands such as Kellogg’s, Eggo and MorningStar Farms. Kellanova’s portfolio complements the existing Mars portfolio, which includes billion-dollar snacking and confectionery brands like Snickers, M&M’s, Twix, Dove and Extra, as well as Kind bars and Nature’s Bakery. Mars also has 10 pet care brands with more than $1 billion in sales.
“In welcoming Kellanova’s portfolio of growing global brands, we have a substantial opportunity for Mars to further develop a sustainable snacking business that is fit for the future. 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. We have tremendous respect for the storied legacy that Kellanova has built and look forward to welcoming the Kellanova team,” said Poul Weihrauch, CEO and office of the president of Mars Inc. in a release.
The merger combines two giants in the food industry. Both companies have roots that go back more than a century. With more than 150,000 associates across its pet care, snacking and food businesses, Mars had 2023 net sales of more than $50 billion. Kellanova had 2023 net sales of more than $13 billion, with a presence in 180 markets and approximately 23,000 employees.
“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 release. “With a proven track record of successfully and sustainably nurturing and growing acquired businesses, we are confident Mars is a natural home for the Kellanova brands and employees.”
Upon completion of the transaction, Kellanova will become part of Mars Snacking, led by Andrew Clarke, and headquartered in Chicago. Kellanova’s Battle Creek, Mich., location will close but remain “a core location for the combined organization.”
Mars Inc. offered an overview of how the acquisition fits its strategic vision for the future of snacking:
- Accelerates its ambition to double Mars Snacking in the next decade, in alignment with global consumer demand trends. The addition of Kellanova provides Mars Snacking with entry into new snacking categories and expands the Mars health-and-wellness snacking portfolio.
- Enhances its portfolio with the addition of unique, category-leading and growing brands. The majority of Kellanova snacking brands outperform category competitors, particularly among Gen Z and Millennial consumers.
- Delivers a stronger, differentiated portfolio and distribution platform for priority international markets.
- Enable each company’s talent base to take advantage of greater combined resources and professional development opportunities.
- Augments research and development capabilities with the addition of Kellanova’s R&D capabilities.
- Enhances positive societal impact of strong sustainability efforts.
A dedicated website providing ongoing information about the transaction is available at futureofsnacking.com.
This article has been updated since its first publication on August 14, 2024.
