Snacking together: Mars to acquire Kellanova

Pet care, snacking and food producer Mars has announced that it will acquire cereal, snacking and noodle producer Kellanova for US$83.50 per share, for a total consideration of US$35.9bn, including assumed net leverage.

Upon completion of the transaction, Kellanova will become part of Mars Snacking, led by Global President Andrew Clarke and headquartered in Chicago. Mars intends to further nurture and grow Kellanova’s brands, including accelerating innovation to meet evolving consumer tastes and preferences, investing locally to expand reach and introducing more better-for-you nutrition options.

Transaction Infographic. Image credit: Mars.

Poul Weihrauch, CEO and Office of the President of Mars, Incorporated, 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 honour 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.”

Steve Cahillane, Chairman, President and CEO of Kellanova, said: “We are excited for Kellanova’s next chapter as part of Mars, which will bring together both companies’ world-class talent and capabilities and our shared commitment to helping our communities thrive. With a proven track record of successfully and sustainably nurturing and growing acquired businesses, we are confident Mars is a natural home for the Kellanova brands and employees.”

Kellanova’s brands include Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, NutriGrain and RXBAR, as well as food brands including Kellogg’s (international), Eggo and MorningStar Farms. The company had 2023 Net Sales of more than US$13bn, with a presence in 180 markets and approximately 23,000 employees.

The company’s portfolio complements the existing Mars portfolio, which includes snacking and confectionery brands like SNICKERS, M&M’S, TWIX, DOVE and EXTRA, as well as KIND and Nature’s Bakery. Mars also has 10 pet care brands.

Top image caption: Kellanova's portfolio.