USA: Mars enters agreement to acquire Kellanova

Mars, the leading food multinational, has signed an agreement to acquire Kellanova, the breakfast foods and snacks major, in a deal valued at $35.9 billion.

Kellanova’s portfolio includes snack brands such as Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, NutriGrain, and RXBAR, and other food brands including Kellogg’s, Eggo, and MorningStar Farms. The company had 2023 net sales of more than $13 billion, and has a presence in 180 markets as well as a workforce of approximately 23,000.

Mars said it would pay $83.50 per share, including net leverage, for all of Kellanova’s brands and assets.

Commenting on the acquisition, Mars CEO and office of the resident Poul Weihrauch said: “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. We will honor 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”.

Kellanova chairman, president and CEO Steve Cahillane added: “This is a truly historic combination with a compelling cultural and strategic fit. Kellanova has been on a transformation journey to become the world’s best snacking company, and this opportunity to join Mars enables us to accelerate the realization of our full potential and our vision. The transaction maximizes shareholder value through an all-cash transaction at an attractive purchase price and creates new and exciting opportunities for our employees, customers, and suppliers”.

The transaction is expected to close within the first half of 2025, subject to customary regulatory approvals and Kellanova shareholder approval.

Source: Mars / Kellanova