Mars has announced its acquisition of Kellanova for $35.9 billion, enhancing its global snacking portfolio with Kellanova’s iconic brands and aiming to double its snacking division in the next decade.
Mars Incorporated, a global leader in confectionery, pet care, and food products, has officially confirmed its acquisition of Kellanova for $35.9 billion. Kellanova, renowned for its iconic snacking brands such as Pringles, Cheez-It, and Pop-Tarts, will be acquired at $83.50 per share in cash, including assumed net leverage. This strategic move is set to significantly enhance Mars’ global snacking portfolio and expand its presence in the food and snack industry.
Enhancing Mars’ Global Snacking Business
This acquisition marks a significant milestone for Mars, enabling the company to create a broader, more diverse global snacking business. Mars anticipates that this strategic move will enable it to double its snacking division within the next decade. The initial rumors of the transaction surfaced on August 6, 2024, and have now been officially confirmed.
Kellanova’s Iconic Brands
Kellanova, formerly known as Kellogg’s, is renowned for its portfolio of iconic snacking brands, including Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, and NutriGrain. Additionally, Kellanova’s lineup features Kellogg’s (international), Eggo, and MorningStar Farms, among other popular brands. With over 100 years in the industry, Kellanova operates in 180 markets and employs approximately 23,000 people.
Strategic Fit and Future Prospects
The acquisition is set to integrate Kellanova’s well-established brands with Mars’ existing portfolio, which includes billion-dollar brands like SNICKERS, M&M’S, TWIX, and DOVE. Mars also manages 10 pet care brands, such as ROYAL CANIN, VCA, PEDIGREE, and WHISKAS. This combination is expected to create synergies that will enhance Mars’ ability to innovate and meet evolving consumer preferences.
Poul Weihrauch, CEO and Office of the President of Mars, commented on the acquisition: “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. We have tremendous respect for the storied legacy that Kellanova has built and look forward to welcoming the Kellanova team.”
Steve Cahillane, Chairman, President, and CEO of Kellanova, described the acquisition as a 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.”
Operational Changes
Following the acquisition, Kellanova will become part of Mars Snacking, which will be led by Global President Andrew Clarke and headquartered in Chicago. Mars plans to accelerate innovation, invest locally, and introduce more healthier options to meet evolving consumer tastes and preferences.
As Mars integrates Kellanova into its portfolio, the company aims to leverage its combined strengths to drive future growth and continue delivering high-quality products to consumers worldwide.
