The basics:
- Mars to acquire Kellanova for $35.9 billion; deal closes Dec. 11.
- Kellanova brands joining Mars include Pringles, Pop-Tarts, Cheez-It
- Combined business will operate 80 facilities, serve 145+ global markets
- Deal cleared by US, EU regulators creates $36B snacking unit
Consumer packaged goods giant Mars Inc. is set to acquire snack maker Kellanova in a deal worth $35.9 billion.
Under the terms of the previously announced transaction, Kellanova’s portfolio of brands, such as Pringles, Cheez-It, Pop-Tarts and Rice Krispies Treats, will join a lineup of Mars treats that include Snickers, M&M’s, Twix, Kind and Skittles.
The transaction is expected to close Dec. 11. After, the Kellogg Co. spinoff will become part of Mars’ snacking division. It will remain based in Chicago. Additionally, Kellanova’s stock will no longer trade on the New York Stock Exchange, Mars said.
Powered by a team of more than 50,000 employees, the business will operate 80 global production facilities and serve more than 145 markets, Mars said.
According to Mars, the combined unit is expected to generate about $36 billion in annual revenues.
Sweet deal
Initially announced in August 2024, the acquisition will mark the largest in the industry since the $45 billion tie-up of Kraft Heinz in 2015. It will also set Mars’ biggest deal since its 2008 purchase of Wrigley for $23 billion.
Beyond creating a powerhouse player in snacks and packaged foods, the deal gives Mars deeper reach into breakfast and convenience categories. That will help strengthen its ability to compete with giants like Nestlé and Mondelez, analysts believe.
Mars originally projected it would complete the transaction in the first half of this year.
U.S. antitrust regulators cleared the proposed takeover in June. However, European counterparts needed more time to review the merger. At the time, the European Commission expressed concerns that the deal could lead to price hikes for many brands that EU markets regard as a must-have for consumers.
In a Dec. 8 decision, the commission concluded the transaction does “not raise competition concerns” and would not result in higher prices for shoppers.
“We can’t wait to welcome Kellanova talent to Mars and create a shared, global snacking leader with a beloved range of brands,” Andrew Clarke, global president, Mars Snacking, said in a statement. “We’ve said all along that Mars Snacking and Kellanova will be better together, building on the strength of our respective legacies and capabilities to unlock new possibilities and drive growth.”
Steve Cahillane, chairman, president and CEO of Kellanova, shared, “This combination will bring together two purpose-driven and principles-led companies. Serving as Kellanova’s Chairman, President and CEO has been a true honor, and I’m looking forward to seeing Kellanova people and brands thrive as part of Mars Snacking.”
Another NJ tie-in
Mars CEO and President Poul Weihrauch added, “Our focus now turns to welcoming Kellanova employees to Mars and creating an even more innovative global snacking business that delivers greater choice and quality to more consumers around the world.”
While Mars has its headquartered in McLean, Va., the company also boasts longstanding ties to New Jersey. It maintains facilities in Newark and Hackettstown here.
Kellanova emerged in 2023 when Kellogg broke up. Its brands also include Town House, MorningStar Farms, NutriGrain and Eggo.
Meanwhile, Ferrero Group acquired WK Kellogg, the cereal company created in the Kellogg Co.’s split, in September for $3.1 billion.
Through that deal, Ferrero gained access to well-loved brands such as Frosted Flakes, Special K, Apple Jacks, Rice Krispies, Froot Loops and Raisin Bran.
Ferrero has its North American headquarters in Parsippany. The leader in sweet-packaged foods products’ include Nutella, Kinder, Ferrero Rocher, Butterfinger, Keebler, Famous Amos, Nerds, Trolli and Jelly Belly.
