Mars, Incorporated has announced a definitive agreement to acquire Kellanova (NYSE: K) for $35.9 billion. The transaction, which includes assumed net leverage, will see Kellanova shareholders receive $83.50 per share in cash, representing a premium of approximately 44% to the company’s 30-day volume-weighted average price and 33% to its 52-week high as of 2 August 2024.
Kellanova, known for its iconic brands such as Pringles®, Cheez-It®, Pop-Tarts®, and Kellogg’s® (international), reported over $13 billion in net sales in 2023, with a presence in 180 markets and approximately 23,000 employees. Mars, with its own billion-dollar brands including SNICKERS®, M&M’S®, and KIND®, had net sales exceeding $50 billion in 2023 and employs over 150,000 associates globally.
The acquisition is set to enhance Mars’ snacking portfolio, aligning with the company’s strategic vision to “further shape the future of snacking and serve more consumers globally.” Poul Weihrauch, CEO of Mars, commented on the transaction, stating, “We will honour 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.”
Steve Cahillane, Chairman, President, and CEO of Kellanova, echoed the sentiment, describing the acquisition as a “truly historic combination with a compelling cultural and strategic fit.” Cahillane added that the transaction will “create new and exciting opportunities for our employees, customers, and suppliers,” while maximising shareholder value.
The integration of Kellanova into Mars Snacking, led by Global President Andrew Clarke, will allow Mars to leverage Kellanova’s brand portfolio to expand its global reach and introduce new, better-for-you nutrition options in response to evolving consumer preferences. Clarke highlighted the potential for growth, stating, “This is an exciting opportunity to create a broader, global snacking business, allowing Kellanova and Mars Snacking to both achieve their full potential.”
“Enables Mars to further shape the future of snacking and serve more consumers globally”
This strategic move not only accelerates Mars’ ambition to double its snacking business over the next decade but also strengthens its portfolio with the addition of new billion-dollar brands like Pringles® and Cheez-It®. The combined company will be well-positioned to meet consumer demands across a variety of tastes and price points, particularly in fast-growing regions such as Africa and Latin America.
The acquisition also promises to enhance the positive societal impact of both companies’ sustainability efforts. Kellanova’s commitment to social and environmental leadership through initiatives like the Better Days Promise will complement Mars’ Sustainable in a Generation Plan, reinforcing the combined entity’s dedication to responsible business practices.
The transaction, subject to regulatory approvals and other customary closing conditions, is expected to close in the first half of 2025.
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