Mars Inc., known for brands like M&M’s and Snickers, is purchasing food company Kellanova for nearly $30 billion.
Kellanova was formed after Kellogg Co. split into three entities last year and houses brands such as Pringles, Town House, and Rice Krispies Treats.
The big picture: The deal will see Mars paying $83.50 per share in cash, amounting to a total transaction value of $35.9 billion.
- With net sales exceeding $13 billion last year and approximately 23,000 employees, Kellanova provides Mars access to a broad range of consumer brands.
What we’re watching: The acquisition is expected to be finalized in the first half of the following year, with Kellanova becoming part of Mars Snacking and remaining headquartered in Chicago.
- Mars plans to leverage Kellanova’s brands to enhance its snacking platform, enabling them to better cater to consumer needs and boost profitable business growth.
Go deeper: The acquisition comes amid increasing prices impacting consumers and companies, with many businesses facing pressure to keep prices in check.
- Before the news of the acquisition, shares of Kellanova rose by nearly 8% prior to the opening bell.
