A strategic deal is taking place in the CPG sector. It was announced that Mars and Kellanova have entered into a definitive agreement under which Mars has agreed to acquire Kellanova for $83.50 per share in cash, for a total consideration of $35.9 billion, including assumed net leverage.
“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 Poul Weihrauch, Chief Executive Officer and Office of the President. “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.”
According to a press release, Kellanova is home to iconic snacking brands including Pringles®, Cheez-It®, and Pop-Tarts®, as well as cherished food brands including Kellogg’s® (international), Eggo®, and MorningStar Farms®. With roots dating back more than 100 years, Kellanova has a rich legacy of quality and innovation.
Kellanova’s portfolio complements the existing Mars portfolio, which includes billion-dollar snacking and confectionery brands like SNICKERS®, M&M’S®, and TWIX®, as well as KIND® and Nature’s Bakery®.
Upon completion of the transaction, Kellanova will become part of Mars Snacking, led by Global President Andrew Clarke and headquartered in Chicago, allowing Mars to bring even more beloved brands to more consumers globally. Mars intends to apply its proven brand-building approach to further nurture and grow Kellanova’s brands, including accelerating innovation to meet evolving consumer tastes and preferences, investing locally to expand reach, and introducing more better-for-you nutrition options to meet evolving consumer needs.
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