Mars, which makes brands including M&M’s, Snickers and Skittles, is buying food company Kellanova in a deal worth nearly $30 billion, giving it access to brands such as Cheez-It, Eggo and Pop-Tarts
Mars, whose brands include M&M’s, Snickers and Skittles are buying food company Kellanova in a deal worth nearly $30 billion, giving the company access to a vast portfolio of consumer brands, from Cheez-It to Pop-Tarts.
Kellanova was founded when the Kellog Co. was split into three companies last year. Kelnovabased in Chicago, is home to many brands, including Pringles, 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 it will pay $83.50 per share in cash. The company estimated the total value of the transaction at $35.9 billion.
The deal is expected to close in the first half of next year. Once completed, Kellanova will become part of Mars Snacking. It will remain based in Chicago.
“The Kellanova brands significantly expand our snacking platform, allowing us to more effectively meet consumer needs and drive profitable business growth,” said Andrew Clarke, global president of Mars Snacking, in a statement.
The deal comes at a time when rising prices are putting pressure on consumers and which puts many companies under pressure to cap prices. Economists say many consumers appear to be returning to pre-pandemic norms, when most businesses felt they couldn’t raise prices much without losing customers.
Kellanova shares rose nearly 8% before the opening bell on Wednesday.