Mars Acquires Kellanova

Mars, a pet care, snacking and food company, and Kellanova, a global company specializing in snacks, cereal and noodles, North American plant-based foods and frozen breakfast foods, have announced that they have entered into a definitive agreement under which Mars has agreed to acquire Kellanova. 

Kellanova’s brands include Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, NutriGrain, RXBAR and more, as well as food brands including Kellogg’s (international), Eggo and MorningStar Farms.  

 “This is a truly historic combination with a compelling cultural and strategic fit,” says Steve Cahillane, chairman, president and chief executive officer, Kellanova. “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. The transaction maximizes shareholder value through an all-cash transaction at an attractive purchase price and creates new and exciting opportunities for our employees, customers and suppliers. We are excited for Kellanova’s next chapter as part of Mars, which will bring together both companies’ world-class talent and capabilities and our shared commitment to helping our communities thrive. With a proven track record of successfully and sustainably nurturing and growing acquired businesses, we are confident Mars is a natural home for the Kellanova brands and employees.” 

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Kellanova’s portfolio complements the existing Mars portfolio, which includes snacking and confectionery brands like Snickers, M&Ms, Twix, Dove and Extra, as well as Kind and Nature’s Bakery. Mars also has 10 pet care brands, including Royal Canin, VCAm Pedigree, Banfield, Whiskas, Bluepearl, Cesar, Sheba, Anicura and IAMS.  

“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,” says Poul Weihrauch, chief executive officer and office of the president, Mars. “We will honor the heritage and innovation behind Kellanova’s incredible snacking and food brands while combining our respective strengths to deliver more choice and innovation to consumers and customers. We have tremendous respect for the storied legacy that Kellanova has built and look forward to welcoming the Kellanova team.” 

Upon completion of the transaction, Kellanova will become part of Mars Snacking, led by global president, Andrew Clarke, and headquartered in Chicago. Mars intends to apply its 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,” says Clarke. “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. Our complementary portfolios, routes-to-market and R&D capabilities will unleash enhanced consumer-centric innovation to shape the future of responsible snacking.” 

The agreement terms are for $83.50 per share in cash, for a total consideration of $35.9 billion, including assumed net leverage.