Mars has announced a major acquisition, purchasing Kellanova in a deal valued at $35.9 billion. This transaction represents one of the largest in recent history.
The purchase price, equivalent to $83.50 per share, highlights the substantial value Mars places on Kellanova’s international snack and cereal brands.
In 2023, Kellogg’s reorganised its business into two separate entities: WK Kellogg Co and Kellanova. Kellanova has since focused on snack and international cereal brands, including Frosties, Special K, and Coco Pops.
Mars’ $35.9 billion cash offer for Kellanova includes all of its brands, assets, and operations. This encompasses snacks, international cereal, North American plant-based foods, and frozen breakfasts. The purchase will be financed through a mix of cash-on-hand and new debt.
Poul Weihrauch, CEO of Mars, highlighted the significant opportunity to further develop Mars’ sustainable snacking business. He expressed respect for Kellanova’s heritage and innovation, emphasising the combined strengths of both companies.
Kellanova’s Chairman, Steve Cahillane, described the deal as a historic combination with a cultural and strategic fit, elevating Kellanova’s potential in the global snacking market.
Andrew Clarke, Global President of Mars Snacking, regarded the acquisition as a chance to create a broader, global snacking business with synergistic benefits in portfolios, R&D, and market reach.
Mars plans to integrate Kellanova’s international cereal and noodle portfolio, adding to its diverse offerings. This move aligns with global trends and consumer preferences, particularly in health-conscious snacking.
The $35.9 billion transaction is to be financed through cash-on-hand and new debt, for which commitments have already been secured.
The Boards of Directors from both companies have unanimously approved the transaction. However, the deal is still subject to shareholder and regulatory approval. It is expected to close in the first half of 2025.
Upon completion, Kellanova will become part of Mars Snacking, headquartered in Chicago and led by Andrew Clarke.
The acquisition is set to create new opportunities for employees, customers, and suppliers. It aims to merge the companies’ world-class talent while maintaining a commitment to community engagement.
The news of Mars’ acquisition of Kellanova has been met with optimism in the market. Investors see this as a positive move towards expanding Mars’ product offerings and market reach.
This acquisition marks a significant milestone for Mars in its quest to dominate the global snacking market.
With Kellanova’s strong portfolio and Mars’ robust operational framework, the future looks promising for both entities.