Mars to acquire Pringles maker Kellanova for nearly $36 bn …C0NTINUE READING HERE >>>
Mars, the business behind M&M’s and Snickers, says it reached a deal to acquire Pringles maker Kellanova.
Photo: SCOTT OLSON / GETTY IMAGES NORTH AMERICA/Getty Images via AFP/File
Source: AFP
M&M’s and Snickers maker Mars said Wednesday that it would acquire snack food business Kellanova, marking a multibillion dollar agreement set to result in a new industry giant.
The all-cash transaction would value Kellanova — which is behind snacks such as Pringles and Pop-Tarts — at $35.9 billion, including debt.
“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,” said Mars chief executive Poul Weihrauch in a statement.
The announcement comes at a time when consumers feel the squeeze from rising costs of living, putting pressure on companies to rein in their price hikes.
The move could, however, attract scrutiny from US regulators who have taken a tough stance on consolidations.
The acquisition for $83.50 per share in cash “accelerates ambition to double Mars Snacking in the next decade, in alignment with global consumer demand trends,” Mars said.
Read also
Foxconn net profit rises in second quarter on AI demand
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
This would bring two new billion-dollar brands, Pringles and Cheez-It, into its business.
Already, the company said it has 15 billion-dollar brands.
“Snacking is a large, attractive and durable category that continues to grow in importance with consumers,” Mars added.
Kellanova had net sales in 2023 of around $13 billion, and it is present in 180 markets with some 23,000 employees.
Shares of Kellanova were up by 7.3 percent in US pre-market trading.
The Mars statement added that most of Kellanova’s snack brands outperform competitors, especially among Gen Z and millennial buyers.
The combined portfolio would also be suited to meet demand in fast-growing markets such as Africa and Latin America, given their supply chains and local operations, the company said.
Read also
Ligue 1 begins post-Mbappe era further weakened after TV rights fiasco
The plan, according to Mars, is to grow Kellanova’s brands further.
The deal, which is anticipated to close in the first half of 2025, will need the green light from Kellanova shareholders and also require regulatory approvals.
Mars plans to fully finance the acquisition via a combination of cash-on-hand and new debt, it said, adding that commitments have been secured.
Family-owned business Mars said it employs about 150,000 workers and has over $50 billion in annual sales.
Besides snacking and food products, the company is also involved in the pet care sector.
In 2022, Mars said it reached a deal to buy whole-fruit snacking brand Tru Fru. And two years before that, it announced its acquisition of Kind North America — which specializes in healthier snacks.
Source: AFP
>