Mars Incorporated’s $35.9bn acquisition of Kellanova is set to shake up the snacking world

Mars, Incorporated, a family-owned global leader in pet care, snacking, and food, has entered into a definitive agreement to acquire Kellanova, a prominent player in global snacking, international cereals, and plant-based foods, for $35.9 billion. This strategic acquisition is not just a one-off deal but part of a broader trend of Mars’ aggressive expansion through strategic acquisitions, positioning itself as a dominant force in the global food industry.

The acquisition of Kellanova, which is valued at $83.50 per share in cash, reflects Mars’ strategy to diversify its product portfolio and tap into the growing demand for snacks. Kellanova’s portfolio, including iconic brands such as Pringles, Cheez-It, and Pop-Tarts, complements Mars’ existing lineup of billion-dollar brands like SNICKERS, M&M’S, and TWIX, thereby expanding Mars’ reach and market share in the snacking industry.

This move follows several other significant acquisitions by Mars in recent years. Notably, in 2023, Mars completed the acquisition of Tru Fru, a healthy snack brand, and Champion Petfoods, further solidifying its position in the pet care industry. Additionally, Mars acquired Cerba HealthCare’s veterinary diagnostics businesses in 2024, enhancing its capabilities in animal health. These acquisitions highlight Mars’ ongoing strategy of leveraging acquisitions to build a diverse and robust global portfolio across different segments of the food and pet care industries.

The acquisition of Kellanova also aligns with Mars’ ambition to double its snacking business over the next decade. The addition of Kellanova’s strong brands and innovative product lines will enable Mars to better cater to evolving consumer preferences, particularly the growing demand for healthier and more sustainable snack options. This is in line with Mars’ broader sustainability goals, which include commitments to net-zero emissions and responsible marketing practices.

The transaction, which has been unanimously approved by Kellanova’s Board of Directors, is expected to close in the first half of 2025, subject to shareholder approval and regulatory clearances. Upon completion, Kellanova will become part of Mars Snacking, led by Global President Andrew Clarke and headquartered in Chicago, further strengthening Mars’ position in the global snacks market.

Strategic Impact and Future Growth

This acquisition represents one of the largest transactions in the packaged food industry since the Kraft-Heinz merger, underscoring the growing trend of consolidation in the food and snacking sectors. Analysts believe that the Mars-Kellanova deal is poised to pass regulatory scrutiny due to the limited overlap in their product offerings, allowing the combined entity to effectively meet consumer demands across various markets.

The addition of Kellanova’s research and development capabilities will further drive consumer-centric innovation, positioning Mars to shape the future of responsible snacking and capitalize on the growing global demand for innovative food products.

Mars’ acquisition of Kellanova as a strategic move to secure long-term growth and enhance its competitive position in the global snacking industry. By integrating Kellanova’s brands and capabilities, Mars is expected to unlock new growth opportunities, drive synergies, and deliver substantial value to its stakeholders.

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What is the latest acquisition by Mars Incorporated?

Mars Incorporated has recently entered into a definitive agreement to acquire Kellanova, a leading company in global snacking and food, for $35.9 billion. This acquisition is part of Mars’ strategy to expand its global footprint in the snacking industry and enhance its product portfolio with iconic brands like Pringles and Cheez-It.

How much is Mars paying to acquire Kellanova?

Mars Incorporated is acquiring Kellanova for $35.9 billion, which translates to $83.50 per share in cash. This price represents a premium of approximately 44% over Kellanova’s 30-trading day volume-weighted average price and about 33% over its 52-week high.

What brands will Mars acquire through its purchase of Kellanova?

Through the acquisition of Kellanova, Mars will gain several iconic brands, including Pringles, Cheez-It, Pop-Tarts, Nutri-Grain, and RXBAR. These brands will complement Mars’ existing portfolio, which includes billion-dollar brands like SNICKERS, M&M’S, and TWIX.

Why is Mars acquiring Kellanova?

Mars is acquiring Kellanova to expand its global snacking business, diversify its product offerings, and tap into new market segments. The acquisition aligns with Mars’ ambition to double its snacking business over the next decade and meet the evolving consumer demand for healthier, more innovative snack options.

What are some other recent acquisitions by Mars Incorporated?

In addition to the acquisition of Kellanova, Mars Incorporated has recently acquired several other companies, including Tru Fru, a healthy snack brand, and Champion Petfoods. Mars also completed the acquisition of Cerba HealthCare’s veterinary diagnostics businesses in 2024, further enhancing its capabilities in animal health.

What is the strategic significance of Mars acquiring Kellanova?

The acquisition of Kellanova is strategically significant for Mars as it not only strengthens its position in the global snacking industry but also allows it to leverage Kellanova’s research and development capabilities. This will enable Mars to drive consumer-centric innovation and capitalize on the growing global demand for innovative and sustainable food products.

What is the expected impact of the Mars-Kellanova deal on the global food industry?

The Mars-Kellanova deal is expected to have a significant impact on the global food industry by consolidating two major players in the snacking sector. It is likely to lead to increased competition, drive innovation in product offerings, and potentially result in more mergers and acquisitions as companies seek to scale and compete effectively.

How will the Mars-Kellanova acquisition affect employees and operations?

Post-acquisition, Kellanova will become part of Mars Snacking, led by Global President Andrew Clarke, and headquartered in Chicago. While there might be some organizational restructuring, Mars has a track record of nurturing acquired businesses, which could create new opportunities for Kellanova’s employees.

What financial advisors and legal advisors are involved in the Mars-Kellanova deal?

Citi is serving as the financial advisor to Mars, while J.P. Morgan and Citi have provided financing support for the transaction. Skadden, Arps, Slate, Meagher & Flom LLP is serving as the legal advisor to Mars on the acquisition, with Simpson Thacher & Bartlett LLP providing legal advice for the debt financing. Goldman Sachs is serving as the financial advisor to Kellanova, and Kirkland & Ellis LLP is providing legal advice to Kellanova.