The family-owned giant Mars, whose portfolio includes the popular chocolate desserts Twix, Snickers and M&M’s chocolate candies, is acquiring Pringles maker Kellanova. The deal will be completed in the first half of 2025.
KEY FACTS
- The deal is valued at nearly $36 billion and will bring together under one roof popular consumer brands including Mars’ Twix, Bounty and Milky Way chocolates, as well as Kellanova’s portfolio of Pop-Tarts, Rice Krispies Treats and Eggo frozen waffles.
- This is the largest deal in the packaged food sector and will allow Mars to diversify its business by expanding its operations. Kellanova manufactures products in 21 countries and markets them in over 180 countries.
- Mars will pay $83.50 per share for Kellanova, which represents about a 33% premium to Kellanova’s closing price on Aug. 2. Kellanova shares rose as much as $80.45 in premarket trading.
- According to the calculations of the “Reuters” agency, the value of the company’s shares is 28.58 billion dollars.
- The deal comes at a time when growth in the U.S. packaged food sector is slowing due to inflation and the incomes of consumers who prefer cheaper products.
- The acquisition is not expected to face too many regulatory hurdles. The acquisition will test regulators’ willingness to allow consolidation in the packaged foods sector.
THE BIG NUMBER
47 billion dollars. This is the size of the annual turnover of Mars. The family-owned company is based in Virginia and began selling buttercream candies from a small kitchen in 1911.
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