Mars Incorporated announced that it has agreed to acquire snack company Kellanova in a deal worth nearly $36 billion.
“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, CEO and president of Mars.
The acquisition will be one of the largest food deals in years, the New York Times reported. It values Kellanova at $35.9 billion, including debt. Mars said it has agreed to pay $83.50 a share for Kellanova in the all-cash deal.
According to Reuters, legal experts said that “The acquisition is also not expected to face too many antitrust roadblocks due to the limited overlap between the offerings of the two companies.”
Upon completion of the transaction, Kellanova will become part of Mars Snacking, led by Global President Andrew Clarke and headquartered in Chicago, the companies said in a statement. Mars also stated that it “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.”
“This is an exciting opportunity to create a broader, global snacking business, allowing Kellanova and Mars Snacking to both achieve their full potential,” Clark said. “Kellanova and Mars share long histories of building globally recognized and beloved brands. The Kellanova brands significantly expand our snacking platform, allowing us to even more effectively meet consumer needs and drive profitable business growth.”
Steve Cahillane, chairman, president and CEO of Kellanova, said, “This is a truly historic combination with a compelling cultural and strategic fit. Kellanova has been on a transformation journey to become the world’s best snacking company, and this opportunity to join Mars enables us to accelerate the realization of our full potential and our vision.”
According to the Wall Street Journal, Mars has acquired several snack brands since 2020, including Kind’s North America business, Nature’s Bakery, and Trü Frü, which makes chocolate-coated fruit snacks.