Mars to Acquire Pringles Maker Kellanova in $36 Billion Deal
Mars, the global confectionery giant known for brands like Snickers and M&M’s, has agreed to acquire Kellanova, the maker of popular snacks such as Pringles and Cheez-It, in a deal valued at nearly $36 billion. The acquisition marks one of the largest in the food and beverage industry this year.
Kellanova announced that its shareholders will receive $83.50 per share in cash, a 33% premium over the stock’s closing price on August 2, prior to reports of the potential acquisition. The total value of the deal, including debt, is $35.9 billion.
This strategic move by Mars will significantly expand its presence in the global snack market, adding a wide range of new products to its existing portfolio. “The Kellanova brands significantly expand our snacking platform, allowing us to meet consumer needs and drive profitable business growth more effectively,” said Andrew Clarke, Global President of Mars Snacking, in a statement.
Kellanova, which was formed last year after Kellogg Company split its snacks and cereal businesses, has seen its stock rise by nearly 8% in pre-market trading following the announcement. The stock has already surged by about 28% this month due to better-than-expected earnings and speculation about the deal.
In addition to Pringles and Cheez-It, Kellanova’s product lineup includes Pop-Tarts, Eggo, and MorningStar Farms vegan and vegetarian food. Earlier this month, the company raised its sales forecast after reporting strong results for the first half of the year.
The acquisition is expected to be finalized in the first half of next year, pending approval from shareholders and regulatory authorities. Once completed, the deal will bring two billion-dollar brands under Mars’ umbrella, further solidifying its position as a dominant player in the global snack industry.
Mars, which remains a family-owned business with annual sales exceeding $50 billion, has been on an acquisition spree in recent years. This latest deal with Kellanova follows previous acquisitions, including Kind Bars in 2020, Trü Frü in 2022, and Hotel Chocolat in 2023.
As consumers become more health-conscious and cut back on discretionary spending due to inflation and high interest rates, the acquisition underscores Mars’ commitment to capitalizing on the growing demand for snacks, which Kellanova described as “a large, attractive, and durable category.”
