August 15, 2024
The news had been circulating for weeks, but only in the last few hours has it been made official: the Mars group (one of the most famous brands are M&M’S) has eaten the Kellanova group (read former Kellogg’s and owner of the Pringles potato chip brand). An acquisition that will give life to a mega sweet and salty food group, worth approximately 35.9 billion dollars including debt. If the operation is authorized by the US Antitrust, it would be one of the most important acquisitions of the year for Wall Street but also the largest ever brought home by the giant Mars, which in 2018 had acquired the chewing gum company Wrigley for 23 billion dollars.
Yesterday, Mars announced it was buying Kellanova for $83.50 per share in cash, for a total consideration of $35.9 billion. The transaction price represents “a premium of approximately 44% to Kellanova’s weighted average price and a premium of approximately 33% to Kellanova’s 52-week high on August 2,” Mars said in a statement. The Kellanova Group owns iconic snack brands including Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, NutriGrain and RxBar, as well as Kellogg’s and MorningStar Farms.
The company has roots dating back more than 100 years and had net sales of more than $13 billion in 2023, with a presence in 180 markets and approximately 23,000 employees. Mars’ portfolio includes billion-dollar snack and confectionery brands such as Snickers, M&M’S, Twix, Dove and Extra, as well as Kind and Nature’s Bakery. Mars also has 10 pet care brands with more than $1 billion in sales, including Royal Canin, Vca, Pedigree, Banfiel, Whiskas, Blupearl, Cesar, Sheba, Anicura and Iams.
The Mars Group was born in 1911 when founder Frank Mars began producing and selling buttercream candies in his home in Tacoma, Washington. The company then moved to Chicago in 1929 and launched the Snickers bar the following year. Mars has since grown steadily through a series of acquisitions. A trend that in 2023 led the group – which employs over 150,000 people in its Petcare, Snacking and Food businesses – to record a turnover of over 50 billion dollars.
“By embracing Kellanova’s growing portfolio of global brands, we have a great opportunity for Mars to further develop a sustainable snacking business fit for the future,” said Poul Weihrauch, Mars CEO, yesterday. Steve Cahillane, Kellanova’s chairman and CEO, echoed the sentiment: “This is a truly historic combination with a compelling cultural and strategic fit. The opportunity to join Mars now will enable JKellanova to accelerate the realisation of our full potential and strategic vision.”