Sweet and salty deal worth $30 billion would put M&M's and Snickers alongside Cheez-It and Pringles
Mars, whose brands include M&M’s, Snickers and Skittles, is buying food company Kellanova in a nearly $30 billion deal, giving it access to brands such as Cheez-It, Eggo and Pop-Tarts
M&M's maker Mars is buying Kellanova, the maker of Cheez-Its and Pop-Tarts, for nearly $30 billion, vastly expanding the number of household-name brands under one roof.
Kellanova was created last year when the Kellogg Co. split into two companies. Kellanova sells many of the former company's most profitable brands, including Pringles, Eggo, Town House, MorningStar Farms and Rice Krispies Treats. It had net sales of more than $13 billion last year and has approximately 23,000 employees.
Mars Inc. said Wednesday that it will pay $83.50 per share in cash. The company put the total value of the transaction at $35.9 billion, including debt.
It is the biggest deal in the sector since J.M. Smucker bought Hostess for $5.6 billion last year, and among the largest of 2024 behind Exxon Mobil's $60 billion acquisition of Pioneer Natural Resources and Capital One Financial's $35 billion acquisition of Discover Financial Services.
Mars' purchase of Kellanova is expected to close in the first half of next year. Once it's complete, Kellanova will become part of Mars Snacking. Corporate headquarters will remain in Chicago.
Mars, headquartered in McLean, Virginia, is one of the largest privately held companies in the U.S.
“The Kellanova brands significantly expand our snacking platform, allowing us to even more effectively meet consumer needs and drive profitable business growth,” Andrew Clarke, global president of Mars Snacking, said in a statement.
Arun Sundaram, an analyst with investment research company CFRA, called the potential combination “a
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