USA – Mars, Incorporated announced its definitive agreement to acquire Kellanova for US$83.50 per share in cash, amounting to a total valuation of US$36 billion.
This strategic acquisition aims to enhance Mars’s position in the global snacking market, allowing the company to serve a broader consumer base.
The transaction represents a significant premium of approximately 44% over Kellanova’s 30-day average stock price and 33% above its 52-week high as of early August 2024.
Kellanova, which was formed from the spin-off of Kellogg’s snack division, boasts a rich history that spans over a century.
The company is renowned for its beloved brands, including Pringles®, Cheez-It®, Pop-Tarts®, and RXBAR®, among others.
In 2023, Kellanova reported net sales exceeding US$13 billion and operates in approximately 180 markets worldwide, employing around 23,000 people.
This acquisition not only strengthens Mars’s existing portfolio, which features iconic brands like SNICKERS® and M&M’S®, but also adds two billion-dollar brands—Pringles® and Cheez-It®—to its lineup.
Poul Weihrauch, CEO of Mars, expressed enthusiasm about the acquisition, stating, “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.”
He emphasized the commitment to honor Kellanova’s legacy while leveraging the combined strengths of both companies to deliver more choices to consumers.
Steve Cahillane, Chairman and CEO of Kellanova, echoed this sentiment, describing the merger as “a truly historic combination with a compelling cultural and strategic fit.”
He noted that joining forces with Mars would accelerate Kellanova’s transformation into a leading snacking company, creating new opportunities for employees, customers, and suppliers.
Cahillane added, “This transaction maximizes shareholder value through an all-cash transaction at an attractive purchase price.”
The acquisition is expected to close in the first half of 2025, pending Kellanova shareholder approval and regulatory clearances.
The deal has already received unanimous approval from Kellanova’s Board of Directors, and significant shareholders, including the W.K. Kellogg Foundation Trust, have committed to vote in favor of the transaction.
Mars plans to finance the acquisition through a mix of cash reserves and new debt, with financial support secured from Citi and J.P. Morgan.
Following the completion of the deal, Kellanova will become part of Mars Snacking, led by Andrew Clarke, Global President of Mars Snacking, who stated, “This is an exciting opportunity to create a broader, global snacking business, allowing Kellanova and Mars Snacking to both achieve their full potential.”
The merger not only enhances Mars’s portfolio but also aligns with the growing consumer demand for healthier snack options.
Mars intends to apply its brand-building expertise to nurture Kellanova’s brands, focusing on innovation to meet evolving consumer preferences.
The combined efforts will also emphasize sustainability, as both companies have established strong commitments to social and environmental responsibility.
The acquisition of Kellanova by Mars marks a significant shift in the snacking industry, bringing together two iconic brands with complementary strengths.
As the transaction progresses, both companies are poised to leverage their combined resources to drive growth and meet the changing needs of consumers worldwide.
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