Mars Inc., announced a nearly $36 billion acquisition of Kellanova, the snack industry powerhouse behind Cheez-Its and Pringles, Wednesday.
If the acquisition goes through, it will see Kellanova, recently spun off from Kellogg’s, join the Mars family, according to a Mars press release. The deal is anticipated “to close within the first half of 2025.” If finalized, Mars would be bringing a portfolio of brands with it — such as M&M’s and Skittles — that have defined snacking for generations.
Kellanova, with 2023 net sales that exceeded $13 billion, operates in over 180 markets globally. The company’s strength lies in its varied product offerings, ranging from snack staples like Pop-Tarts and NutriGrain bars to MorningStar Farms’ plant-based foods.
In this photo illustration, packages of Skittles sit on a table (Photo Illustration by Mario Tama/Getty Images)
“The Kellanova brands significantly expand our snacking platform, allowing us to meet consumer needs more effectively and drive profitable business growth,” Andrew Clarke said regarding the acquisition, according to the press release.
With the addition of Kellanova’s robust brand portfolio, Mars will significantly strengthen its presence in the salty snack category, an area where it previously had limited exposure.
This acquisition reflects the broader trend in the snack industry, where companies are expanding their portfolios to cater to evolving consumer tastes. As snacking habits continue to shift towards more varied flavors, Mars’ acquisition of Kellanova would position the company to better compete against rivals like Hershey that have also expanded into salty snacks.
“Mars is known for its innovation and brand-building, while Kellanova has the global reach to bring more Mars products to more markets,” observed Arun Sundaram, an analyst with CFRA, according to KTVQ. (RELATED: Mapped:Every State’s Favorite Snack Revealed)
The $35.9 billion deal represents an approximately 44% premium “to Kellanova’s unaffected 30-trading day volume weighted average price,” the Mars press release reads. The transaction was unanimously approved by Kellanova’s Board of Directors. Major shareholders, including the W.K. Kellogg Foundation Trust and the Gund Family, have committed to voting in favor of the transaction.
Once completed, this acquisition is expected to face scrutiny from U.S. antitrust regulators. Antitrust arguments are anticipated to be unsuccessful at swaying judges due to a minimal overlap between the companies’ product lines, six antitrust lawyers and industry experts told Reuters.